NEW DELHI– India has carried out a major overhaul of its labour framework by consolidating 29 separate labour laws into four simplified and modernized Labour Codes, a reform the Union Government said on Monday will significantly strengthen protections for contract workers, who often perform essential yet vulnerable roles across industries.
The four new codes — the Code on Wages (2019), the Industrial Relations Code (2020), the Occupational Safety, Health and Working Conditions (OSH) Code (2020), and the Code on Social Security (2020) — aim to create a more inclusive, equitable, and secure labour environment. The government said the new framework provides contract workers with stronger rights, improved working conditions, and greater socio-economic protection.
Under the Code on Wages, no employer may pay any employee less than the minimum wage notified by the government. Previously, minimum wage protections applied only to workers in scheduled industries; the new rules extend coverage to all employees, regardless of sector.
The government must review or revise minimum wages at least once every five years. Minimum wage rates will now be set for time work and piece work — whether hourly, daily, or monthly — and will reflect both the worker’s skill level and the arduous nature of the job. A national “floor wage” will also be set based on minimum living standards, including essential needs such as food and clothing.
The codes also require overtime pay at no less than twice the normal wage rate for work performed beyond standard hours. Employers must provide wage slips — either electronically or in physical form — on or before each payday.
The window for employees to file wage-related claims has been expanded significantly, from the earlier range of six months to two years, to a uniform three-year limitation period.
The new laws also codify when wages must be paid based on the type of employment cycle. Daily wage workers must be paid by the end of the shift; weekly-paid workers must receive wages before the weekly holiday; fortnightly wages must be paid within two days after the end of the period; and monthly wages must be paid within seven days of the following month, regardless of the establishment’s size. If an employee is terminated, the employer must clear all dues within two working days. (Source: IANS)
