Labour codes must look at the invisible workers

The government's decision to bring the four consolidated labour codes into effect from 21 November 2026 marks the most significant overhaul of India’s labour law framework in decades.

- SATYAKI DASGUPTA AND BASIT ABDULLAH

The Centre has notified the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020) and the Occupational Safety, Health and Working Conditions Code (2020). The government has declared that the four labour codes will now take effect, a step that replaces old rules on factories and workers.

A press release from the Ministry of Labour and Employment notes hat the labour codes aim to provide “Better Wages, Safety, Social security & enhanced welfare for India’s workforce.” The provisions extend he right to minimum wages to workers in both the organised and unorganised sectors, while also expanding social-security access o a much larger share of the unorganised workforce.

However, most trade unions across the country are protesting these laws. Unions claim that these laws are anti worker since they will enable easier hiring and firing practices. Companies with up to 299 employees can now lay off staff without the approval of the government. This threshold previously was at 100. Unions claim that this shift alters the balance of power at the workplace in favour of employers.

An additional concern is the implementation of these policies. Translating these provisions into practice will not be straightforward inacountry where an overwhelming majority of the workforce is employed as informal workers. The limits of the new framework appear more sharply in sectors whose employment patterns lie outside the assumptions that guide the codes.