Blitz Bureau
NEW DELHI:Land and labour are foundational to India’s growth – while land drives infrastructure and industrial development, labour fuels productivity and inclusion. In this context, India’s new labour codes mark a transformative step, consolidating 29 laws into a modern, unified framework that ensures clarity, consistency, and equity in the world of work.
For workers, they promise stronger social protection, safer workplaces, and wider access to formal benefits, while businesses benefit from simplified compliance, flexibility in workforce management, and a level-playing field across sectors. While the ultimate impact will depend on the quality of implementation, these codes mark a decisive step in aligning India’s labour market with the needs of a 21st-century economy.
Core assurances
Across diverse sectors – from delivery services in Jaipur to technical roles in Sanand, and construction work in Guwahati – India’s workforce shares a common aspiration: access to safe working conditions, fair remuneration, and social security that is portable and reliable. Whether employed in factories, on farms, or through platformbased services, workers seek three core assurances: income stability, predictable social protection, and dignity in employment. India’s four Labour Codes have been formulated with the objective of translating this aspiration into a lived reality, ensuring that the principles of equity and protection are embedded across the world of work.
At the heart of the reforms lies an expansion of social security coverage. Millions of unorganized, gig, and platform workers, who form a significant share of India’s workforce, stand to gain formal recognition and entitlements under the new framework. Provisions for provident fund, health insurance, and maternity benefits are no longer confined to employees in the formal sector but extend to categories historically excluded. This shift not only strengthens the safety net for vulnerable workers but also encourages more enterprises to formalise employment, thereby expanding the overall base of social protection.
Dedicated funds
The Code on Social Security, 2020, formally recognizes gig, platform, and unorganised workers and allows the Centre and states to set up dedicated social-security funds for them. Aggregators can be required to contribute 1-2 per cent of turnover, capped at 5 per cent of payouts, a practical way to finance benefits for gig and platform workers.
Aadhaar-based registration is already notified, and the e-Shram portal has enrolled over 31 crore workers, giving each a portable Universal Account Number (UAN) enabling portability of benefits such as health insurance, maternity support, or old-age pensions, regardless of where they work. The e-Shram registry is, in effect, India’s first national database of informal workers – an essential step towards inclusive growth and disaster resilience.
Progressive measure
Equally transformative is the Occupational Safety, Health and Working Conditions Code, which unifies safety norms and, notably, permits women to work night shifts with consent and safeguards.
This progressive measure expands the opportunities for women while keeping protection non-negotiable. The OSH Code also rationalises licensing and inspection systems, moving towards risk-based, technology-enabled compliance to promote a culture of prevention rather than punishment. The Code on Wages, meanwhile universalises the framework for minimum wages and timely payments across all sectors, irrespective of their sector or skill level.
