Do New Labour Codes Enhance Contract Workers' Rights?
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Synopsis
With the introduction of four modern Labour codes, India aims to strengthen the rights of contract workers. These reforms promise better wages, working conditions, and socio-economic security, marking a pivotal moment for the country's labour landscape.
Key Takeaways
- Four modern Labour codes have been introduced in India.
- The codes aim to enhance rights and security for contract workers.
- Minimum wages now apply to all employees, not just scheduled workers.
- Overtime must be compensated at double the wage rate.
- Claims can be filed within three years of the incident.
New Delhi, Dec 8 (NationPress) - India’s labour framework has experienced a significant evolution with the unification of 29 labour laws into four streamlined and contemporary Labour codes. This reform is particularly beneficial for contract workers who play crucial yet precarious roles across various sectors, as stated by the Union Government on Monday.
The four newly established 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 - are designed to foster a more inclusive and fair labour ecosystem where contract workers gain enhanced rights, improved working conditions, and greater socio-economic stability.
Under the new regulations, employers are prohibited from paying any employee less than the minimum wage set forth by the Government. Previously, minimum wage laws were applicable only to scheduled employees; however, they now extend to all employees.
The Government will evaluate and modify minimum wage rates at intervals not exceeding five years. Furthermore, it will establish minimum wage rates for various types of work, including hourly, daily, or monthly rates, based on employee skills and the difficulty of the tasks.
Moreover, a Floor wage will be set by the Government, taking into account the essential living standards of an employee, which include necessities such as food and clothing.
In the case of overtime, employers must compensate at least double the standard wage rate for any hours worked beyond the standard schedule. Additionally, the codes require employers to provide wage slips, either electronically or in print, to employees before the payment of wages.
The timeframe for employees to file claims has been extended to three years, compared to the previous limits of six months to two years.
The regulations also stipulate that employers must disburse wages to all employees according to their employment type, which means daily wages should be paid at the end of the shift, weekly wages before a weekly holiday, and fortnightly wages within two days of the period ending. For monthly pay cycles, wages must be issued within seven days of the following month.
Additionally, if an employer dismisses an employee, they are obligated to settle all dues within two working days.
Point of View
I recognize the significance of these Labour codes in ensuring that contract workers receive the rights and protections they deserve. This reform not only addresses long-standing vulnerabilities but also paves the way for a more equitable workforce, vital for India's economic growth.
NationPress
08/12/2025
Frequently Asked Questions
What are the new Labour codes introduced in India?
The new Labour codes include the Code on Wages, 2019; the Industrial Relations Code, 2020; the OSH Code, 2020; and the Code on Social Security, 2020.
How do these codes benefit contract workers?
They establish stronger rights, better working conditions, and enhanced socio-economic security for contract workers.
What is the new minimum wage regulation?
Employers are now required to pay all employees at least the minimum wage notified by the Government, which applies to all employees, not just scheduled workers.
What are the overtime payment regulations?
Employers must pay at least double the normal wage rate for any hours worked beyond the regular schedule.
What is the timeframe for filing claims under the new laws?
The period for employees to file claims has been extended to three years.
