By Shishir Prashant 
PrashantNews
Dehradun-based Indian Industries Association (IAU) has tried to decode the four labour codes against which a nation-wide strike or Bharat Bandh has been called by labour and opposition parties on July 9. Over 25 crore workers from government sectors such as banking, postal services, mining, construction, and transport are expected to go on a nationwide general strike, or Bharat Bandh.
Four Labour Codes: These Codes consolidate 29 Central labour laws into four simplified, comprehensive codes, intended to modernise and rationalise India’s regulatory framework.
Below are the details:
- The Code on Wages, 2019
Objective:
Consolidates and amends laws relating to wages and bonus.
Key Features:
- Provides universal minimum wage coverage for all employees, irrespective of sector.
- Covers payment of wages, minimum wages, and equal remuneration.
- Introduces the concept of a floor wage set by the Central Government.
- Replaces:
- Payment of Wages Act, 1936
- Minimum Wages Act, 1948
- Payment of Bonus Act, 1965
- Equal Remuneration Act, 1976
Significance:
Streamlines wage-related provisions into one code, reducing complexity and litigation.
2 The Industrial Relations Code, 2020
Objective:
Consolidates laws relating to trade unions, conditions of employment, and dispute resolution.
Key Features:
- Simplifies procedures for registration and recognition of trade unions.
- Introduces provisions for fixed-term employment.
- Increases the threshold for lay-offs and retrenchment (from 100 to 300 workers) requiring government approval.
- Introduces provisions for standing orders in establishments with 300 or more workers.
- Replaces:
- Industrial Disputes Act, 1947
- Trade Unions Act, 1926
- Industrial Employment (Standing Orders) Act, 1946
Significance:
Balances flexibility for employers with protection for workers.
3 The Occupational Safety, Health and Working Conditions Code, 2020
Objective:
Consolidates laws on safety, health, and working conditions for workers across sectors.
Key Features:
- Applies to establishments with 10 or more workers and all mines and docks.
- Mandates free health check-ups and annual medical examinations.
- Provisions for inter-state migrant workers (registration, benefits, portability).
- Requires appointment letters for all employees.
- Provides single licensing, registration, and returns.
- Replaces:
- Factories Act, 1948
- Mines Act, 1952
- Contract Labour (Regulation and Abolition) Act, 1970
- Inter-State Migrant Workmen Act, 1979
- And several others (total 13 Acts).
Significance:
Creates a unified framework for health and safety across industries.
4 The Code on Social Security, 2020
Objective:
Consolidates laws relating to social security and welfare of employees.
Key Features:
- Extends social security to gig workers and platform workers.
- Enables establishment of social security funds for unorganised workers.
- Facilitates ESI and EPF coverage for more categories of workers.
- Provides for portability of benefits.
- Replaces:
- Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- Employees’ State Insurance Act, 1948
- Maternity Benefit Act, 1961
- Payment of Gratuity Act, 1972
- And several others (total 9 Acts).
Significance:
Modernises India’s social security net and broadens coverage.
Implementation Status (as of 2024–2025)
While all four Codes have been passed by Parliament and notified, they are not yet fully implemented pending finalisation of rules by Central and State Governments. Implementation is expected in a phased manner.
Benefits of the Four Codes
- Simplification: Fewer overlapping laws.
- Ease of Compliance: Common definitions and registrations.
- Increased Formalisation: Mandatory appointment letters, digital records.
- Wider Coverage: Gig workers, inter-state migrants included.
- Flexibility: Allows fixed-term employment.