India’s New Labour Codes: A Transformative, Long-Awaited Win for Workers — And Why the Protests Get It Wrong

New Delhi: India’s labour landscape has undergone a historic and long-overdue transformation through the enactment of the Four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020).

By consolidating 44 central labour laws and over 100 state laws into just four simplified codes, India has modernized a colonial-era framework that had become heavily fragmented, outdated and ineffective for today’s workforce.

These Codes were drafted after nine tripartite consultations, ten inter-ministerial discussions, and incorporation of 74% of the 233 recommendations of the Parliamentary Standing Committee—making them one of the most widely reviewed labour reforms of independent India.

Despite protests and political noise, a detailed look reveals that the Codes significantly expand protections for the very workers they’re accused of undermining—especially farm workers, informal labourers, migrant workers, gig workers, women, contract workers and platform workers.

Below is a consolidated and clear picture of why these reforms are a big win, and why much of the protest narrative rests on half-truths and misunderstandings.

1. Universal Minimum Wage & Formal Recognition for All Workers

A historic shift: every worker now gets minimum wage rights

The previous system provided minimum wages only to “scheduled employments,” leaving out huge categories of rural and informal workers.

Now:

Every worker—farm labourers, construction workers, domestic workers, gig workers, drivers, delivery agents—is entitled to a minimum wage.

A National Floor Wage ensures no state can go below a basic threshold.

Timely wage payment is now a statutory right.

This is a massive win for farm labourers, seasonal workers and rural migrant workers who were earlier entirely unprotected.

Formal appointment letters for all

The Codes mandate:

Appointment letters for all workers

Formal employment status

Clear record of wages, hours and benefits

For millions who worked without proof or written terms, this is a major shift in power and dignity.

2. Social Security Expanded to Gig Workers, Farm Workers, Informal Workers

For the first time in India’s history, the Codes explicitly include:

gig workers

platform workers

agricultural and rural labourers

contract, daily-wage and temporary workers

self-employed informal labourers

Key features:

Social Security Fund for Gig/Platform Workers

Aggregators like Uber, Swiggy, Zomato must contribute 1–2% of annual turnover.

This fund covers:

health insurance

maternity benefits

disability

accident protection

even funeral assistance

ESIC coverage expanded

Now includes:

small establishments (less than 10 workers)

plantation workers

seasonal establishments

EPF, pension and insurance extended to informal workers

E-Shram portal gives every informal worker a digital identity

This allows access to:

government welfare

insurance

pensions

portability across states

This is a huge leap in social protection, particularly for rural and migratory labour.

3. Strong Protections for Women Workers

The Codes strengthen women’s rights in major ways:

Equal pay for equal work is now a binding legal requirement.

Safe night shifts are allowed with mandatory safety conditions.

Crèche facilities mandatory at or near workplaces.

26 weeks paid maternity leave reaffirmed and extended to more categories.

This significantly boosts opportunities for women in rural work, construction, agriculture, services and gig economy.

4. Long-Due Rights for Migrant Workers

Inter-state migrant workers—among the most vulnerable groups—gain:

Equal wages in destination states

Portability of benefits via Aadhaar-linked UAN

Travel allowance for annual journey home

Coverage under ration, social security and welfare schemes

Registration via simplified database

Earlier, migrant workers fell between state jurisdictions. Now their rights travel with them.

5. Occupational Safety and Free Annual Health Check-Ups

The Occupational Safety Code mandates:

free annual health check-ups for workers above 40

universal standards for workplace safety

better sanitation, rest facilities, drinking water, ventilation

protections for workers exposed to heat, machinery, chemicals, long hours

Farm workers, mandi workers, factory labourers and construction workers stand to benefit immensely.

6. Legal Recognition and Protection for Fixed-Term Workers

Fixed-term workers now get:

same wages as permanent workers

same benefits, leave and medical protections

gratuity after just one year, instead of five

This prevents exploitation of seasonal or short-term workers—especially common in agriculture, plantations and construction.

7. Simplified Laws → Easier Enforcement → Less Exploitation

Earlier, India had a maze of laws—29 central and many state laws—resulting in:

confusion

corruption

weak enforcement

loopholes exploited by contractors

Now, a clear unified system increases transparency, making it easier for workers to claim rights and easier for inspectors to enforce them.

8. Strengthening Worker Voice: Unions & Right to Strike

Contrary to claims:

Trade union recognition is formalized, not weakened.

Right to strike is preserved, but with structured notice periods.

This reduces arbitrary lockouts, and encourages negotiation & fairness.

Data from Rajasthan (which raised retrenchment threshold earlier) shows:

employment increased

retrenchments reduced

The “hire and fire” claim is oversimplified and often misleading.

9. Digital Grievance Redressal & Faster Justice

Workers now get:

Samadhan portal for online complaints

mandatory Grievance Redressal Committees

Industrial Tribunals with timelines

This helps especially:

rural workers

temporary workers

migrant workers

gig workers

who previously had no access to legal mechanisms.

10. Reskilling Fund for Retrenched Workers

Employers must contribute 15 days’ wages to reskill any worker who is retrenched.

This is crucial for:

seasonal workers

contract workers

those shifting sectors

Why the Protest Narrative Misses the Full Picture

Protests are legitimate in democracy, but many objections are misleading:

Myth 1: “Hire and Fire will increase”

Reality: core protections remain intact, including:

minimum wage

social security

PF/pension

gratuity

formal letters

overtime pay

Raising the threshold from 100 to 300 mirrors global norms and helps MSMEs grow—leading to more jobs, not less.

Myth 2: “Working hours will become 12 hours”

Reality:

Weekly cap remains 48 hours

Overtime must be paid at double rate

For agricultural labourers who already work long hours without compensation, this brings formal protection.

Myth 3: “Unions are weakened”

Reality: unions remain protected; recognition is structured.

The Codes only modernize systems that were built for the 1970s, not for gig workers, platform workers or fluid labour markets.

Myth 4: “Only employers benefit”

Reality: the biggest winners are farm workers, informal labourers, and gig workers who previously had zero legal protection.

Myth 5: “Implementation will be weak, so reject the law”

Reality: if implementation is the concern, protests should demand stronger enforcement, not rejection of worker rights.

Final Conclusion: A New Era for India’s Workers

India’s Labour Codes bring:

universal minimum wages

social security for all

protections for gig & platform workers

rights for migrant workers

formalisation for agricultural and rural labour

stronger women’s rights

safer workplaces

health benefits

reskilling for displaced workers

simpler laws and faster justice

These Codes are not anti-worker—they are protection-centred, modern, and long overdue.

They represent an opportunity to uplift India’s most vulnerable workers, not a threat to them.

The right approach is not rejection—but active engagement, enforcement demands, and ensuring the benefits reach those who need them most.