India’s sweeping labour reforms have attracted global attention, with international organisations and policy experts praising the country’s bold move to modernise its labour laws. The consolidation of 29 fragmented legislations into four streamlined labour codes is being hailed as a landmark step that strengthens worker protection, simplifies compliance for businesses, and positions India as a leader in shaping future-ready labour frameworks.
Comparison: Old vs New Labour Laws for Male Workers
| Aspect | Old Labour Laws (Pre-2025) | New Labour Codes (2025 Onward) |
|---|---|---|
| Structure | 29 separate laws with overlapping provisions | 4 consolidated codes: Wages, Industrial Relations, Social Security, OSHWC |
| Minimum Wages | Varying rates across states and sectors | Uniform national floor wage; simplified calculation |
| Appointment Letters | Not mandatory | Written appointment letters now compulsory for all employees |
| Working Hours | Typically 8 hours/day; overtime rules varied | Standardized 8-hour workday; clear overtime provisions |
| Social Security Coverage | Limited to formal sector workers | Extended to gig workers, platform workers, and informal sector |
| Gratuity Eligibility | Only after 5 years of continuous service | Available even for fixed-term employees |
| Layoff & Retrenchment | Complex procedures; thresholds varied by establishment size | Clearer rules; thresholds raised for mandatory government approval |
| Dispute Resolution | Multiple forums; slow and inconsistent | Streamlined process via Industrial Relations Code |
| Occupational Safety | Covered under Factory Act; limited scope | Broader coverage across sectors; mandatory safety standards |
| Compliance Burden | High paperwork; multiple registrations | Single registration and licensing portal; digital-first approach |
The Four Labour Codes Explained
India’s labour codes, passed between 2019 and 2020 and implemented in 2025, represent one of the most ambitious governance reforms since Independence. They cover four critical areas:
- Code on Wages (2019) – Establishes a uniform minimum wage across sectors and ensures timely payment of salaries.
- Industrial Relations Code (2020) – Simplifies dispute resolution mechanisms, balances employer-employee relations, and provides clarity on strikes and layoffs.
- Code on Social Security (2020) – Expands social security benefits to gig workers, platform workers, and those in the informal sector, bringing millions under formal protection.
- Occupational Safety, Health and Working Conditions Code (2020) – Strengthens workplace safety standards, regulates working hours, and enhances health provisions for employees.
Together, these codes replace decades-old laws that had become outdated and cumbersome, creating a modern framework aligned with global best practices.
Global Recognition and Praise
The international response has been overwhelmingly positive:
- International Labour Organisation (ILO) officials have described India’s reforms as a “significant leap” in inclusive labour systems, noting that the codes align with international conventions on worker rights and social protection.
- International Social Security Association (ISSA) welcomed the consolidation, highlighting that India’s approach enhances efficiency and fairness while expanding coverage to vulnerable groups.
- Policy experts in Asia, Europe, and Africa have pointed to India’s model as an example for other emerging economies seeking to balance rapid growth with worker welfare.
Why the World is Applauding
Several factors explain the international praise:
- Social protection leap: Extending benefits to gig and informal workers is seen as a progressive step, especially in an era of digital platforms and flexible work arrangements.
- Simplification & compliance: By merging 29 laws into four codes, India has reduced complexity, making compliance easier for businesses while safeguarding workers’ rights.
- Women empowerment: The codes expand opportunities for women, including flexible working hours and enhanced safety provisions, reflecting inclusivity in the workforce.
- Future-ready economy: The reforms are viewed as part of India’s broader push towards “Atmanirbhar Bharat” (self-reliant India), strengthening its competitiveness in global value chains.
Domestic Reactions: Applause and Criticism
While the world celebrates, reactions at home are more nuanced:
- Government’s stance: Prime Minister Narendra Modi has described the codes as a cornerstone of India’s economic transformation, emphasising their role in creating a future-ready workforce.
- Industry support: Business leaders welcome the simplification of compliance, which reduces bureaucratic hurdles and encourages investment.
- Trade union concerns: Several unions argue that the codes may dilute collective bargaining rights, weaken protections against retrenchment, and fail to adequately address contract labour issues.
- Public debate: Critics call the reforms “old wine in a new bottle,” suggesting that while consolidation is useful, deeper structural issues remain unresolved.
This mix of applause and scepticism reflects the complexity of balancing worker rights with economic growth.
Broader Implications
India’s labour codes are not just about domestic reform; they carry broader implications:
- Global leadership: By modernising its labour framework, India positions itself as a leader among emerging economies, setting standards for inclusive growth.
- Investment climate: Simplified compliance and clarity in industrial relations are expected to improve India’s ease of doing business, attracting foreign investment.
- Worker empowerment: Millions of informal and gig workers now have access to social security benefits, marking a historic expansion of protection.
- Policy innovation: The reforms demonstrate how large, diverse economies can adapt to changing labour markets without sacrificing worker welfare.
Provisions for Women Workers in India’s Labour Codes
India’s new labour codes mark a historic shift in workplace inclusivity, introducing reforms that expand opportunities for women while ensuring safety, equality, and flexibility. By consolidating decades-old laws into a modern framework, the codes aim to empower women workers across industries and align India’s labour standards with global practices.
Night Shift Opportunities
One of the most significant changes is the removal of restrictions on women working night shifts.
- Women can now work between 7 PM and 6 AM, provided they give consent.
- Employers are required to ensure mandatory safety measures, including secure transportation, CCTV surveillance, and female supervisors. This reform opens doors for women in sectors such as IT, healthcare, manufacturing, and services, where round-the-clock operations are common.
Equal Pay and Non-Discrimination
The Code on Wages enforces strict gender neutrality:
- Women must receive equal pay for equal work, eliminating wage disparities.
- Discrimination in recruitment, wages, or conditions of service based on gender is prohibited. This provision strengthens the principle of fairness and promotes gender equality in the workplace.
Maternity Benefits and Childcare
The labour codes reinforce and expand maternity protections:
- Women are entitled to 26 weeks of paid maternity leave.
- Employers must provide nursing breaks and establish crèche facilities in establishments with a prescribed number of employees.
- Flexibility for work-from-home options after maternity leave is encouraged, wherever feasible. These measures support working mothers and promote a healthier work-life balance.
Safety and Health Provisions
Workplace safety is a cornerstone of the new framework:
- Employers must ensure proper sanitation, restrooms, and health facilities for women workers.
- Secure transport and grievance redressal mechanisms are mandatory.
- Dedicated complaint committees must include women representatives to address workplace issues effectively. These provisions aim to create a safe and supportive environment for women employees.
Representation and Participation
The codes also encourage women’s participation in workplace governance:
- Women must be included in grievance redressal committees and advisory bodies.
- Their representation ensures that female perspectives are considered in decision-making processes.
Broader Impact
Together, these provisions:
- Empower women by expanding opportunities in non-traditional roles.
- Encourage inclusivity, making workplaces more diverse and balanced.
- Challenge employers to invest in safety infrastructure and awareness programs.
- Strengthen India’s global image as a country committed to gender equality in labour practices.
Conclusion
India’s labour codes represent a progressive step toward gender equality in employment. By allowing night shifts, enforcing equal pay, strengthening maternity rights, and mandating workplace safety, the reforms create a framework that empowers women while holding employers accountable.
India’s labour codes represent one of the most ambitious governance reforms in recent history. Globally, they are hailed as a bold, future-oriented framework that strengthens worker protection, simplifies compliance, and expands social security to millions. Domestically, debates continue, with unions voicing concerns and policymakers defending the reforms as essential for economic transformation.
Regardless of the criticisms, the international applause underscores a key reality: India has taken a decisive step towards modernising its labour laws, aligning with global standards, and preparing its workforce for the challenges of the 21st century. The world is watching closely, and India’s labour codes may well become a blueprint for other nations seeking to balance growth with inclusivity.
very informative