Labour Laws 2.0: Flexibility for Employers, Friction for Workers?

Image Source: Business Standard

India’s longawaited labour reforms are inching toward implementation, promising to simplify compliance and expand worker protections—but not without stirring debate. The four new labour codes, passed between 2019 and 2020, aim to consolidate 29 existing laws into a streamlined framework covering wages, social security, industrial relations, and occupational safety. While the Centre has yet to notify a national rollout date, several states have begun aligning their rules, setting the stage for a phased transition.

Simplified Compliance

MSMEs stand to benefit most, with compliance filings reduced by over 90%
Registers cut from 76 to just 2–3 under the OSH Code; returns consolidated into a single filing

Worker Protections Expanded

Universal minimum wage, digitized wage records, and mandatory appointment letters
Gig and platform workers now eligible for social security schemes

Flexible Work Models

4day workweek option introduced with longer daily hours
Fixedterm employment recognized, with gratuity eligibility after just one year

Controversial Provisions

In Delhi, layoffs allowed without prior approval for firms with up to 200 employees
Night shifts for women permitted with consent, sparking safety and equity concerns

Phased Rollout