India’s labour law system was built over many decades. While it aimed to protect workers, over time it became scattered, complex, and difficult to follow. The labour law reform was done to correct these problems. Let us understand this through very basic and core questions.
How many labour laws were there earlier in India
Earlier, India had more than 40 central labour laws and over 100 state labour laws. These laws were made over many decades, starting from the British era to modern times.
Because of this large number, both workers and employers often felt confused about:
Which law applied
Which authority to approach
Which rule to follow
Why were the earlier labour laws considered a problem
The old labour laws had many issues such as:
Too many separate laws
Overlapping rules
Difficult compliance procedures
Different definitions for the same terms
Complex paperwork
Slow dispute resolution
Small businesses found it hard to follow these laws, and many workers were not even aware of their rights because the system was too complicated.
Why were exactly 29 laws clubbed into 4 Labour Codes
These 29 laws were not randomly selected. They were grouped based on subject similarity. The idea was to bring related laws under one umbrella so that people could understand them easily.
The laws were grouped into four broad themes:
Wages
Industrial relations
Social security
Workplace safety and conditions
Instead of handling 29 different laws, people now deal with four structured Codes covering the same subjects in an organised way.
What happened to the old labour laws after the Codes were introduced
The old 29 central labour laws were formally repealed, meaning they were legally removed from operation after the Codes come into force. However, their core principles were not deleted. They were re-written, merged, simplified, and modernised inside the four new Codes.
So the old ideas continue, but in a new legal form.
Why were these four specific codes created
Each code was formed by grouping similar subjects together:
The Code on Wages deals with salary related matters like minimum wages, equal pay, and timely payment of wages.
The Industrial Relations Code deals with matters related to:
Trade unions
Strikes and lockouts
Industrial disputes
Layoff, retrenchment, and closure
The Code on Social Security covers benefits such as:
Provident fund
Gratuity
Pension
Maternity benefit
Employee insurance
The OSH Code focuses on:
Worker safety
Health conditions
Working hours
Leave
Welfare facilities at the workplace
What new concepts have been introduced through these Codes
Some important new inclusions are:
A uniform definition of wages across all laws
Introduction of a national floor wage
Legal recognition of fixed-term employment
Proposal for social security for gig and platform workers
Common digital registration and compliance systems
Single licence model for certain establishments
These elements were either missing or unclear in the older system.
If the protections already existed earlier, why was reform still needed
Earlier protections existed, but they were:
Scattered
Difficult to access
Procedurally heavy
Poorly understood
Unevenly implemented
The reform was needed not just for protection, but for:
Clarity
Accessibility
Modern enforcement
Technology-based governance
Did the reform change the balance between workers and employers
The reform aimed to rebalance, not remove protection. It tried to:
Make compliance easier for employers
Make rights clearer for workers
Reduce unnecessary legal hurdles
Promote formal employment
The objective was to move from a control-based system to a compliance-based system.
Some of the key questions have been answered above to clear common doubts about the latest labour law reforms. If you would like to explore the new Labour Codes in greater detail, you may refer to this resource for a deeper understanding.
