India’s new Labour Code marks one of the biggest reforms in the country’s employment system since independence. The government combined more than 29 old labour laws into four clear and modern codes—Wages, Social Security, Industrial Relations, and Occupational Safety. The goal is simple: make work better for employees and easier for businesses to operate.
For many years, India’s labour rules were
complicated. Different states had different guidelines, paperwork was heavy,
and both workers and companies found it difficult to understand their rights
and duties. The new Labour Code aims to remove confusion and bring uniformity
across the nation.
215.1) Why Was a New Labour Code Needed?
The old labour laws were written at a time
when India’s economy was very different. Today, digital work, gig jobs,
start-ups, and global competition require modern and flexible rules.
The new Labour Code was introduced to:
●
Make rules simple and uniform
across India
●
Protect workers’ rights more
clearly
●
Encourage ease of doing business
●
Bring new categories of
workers—like gig and platform workers—into the safety net
●
Reduce unnecessary paperwork and
inspections.
215.2) Key Changes Under the New Labour Code
1. Standard Working Hours
The new code allows flexible work according to
industry needs.
●
The maximum weekly working hours
remain the same.
●
But companies can choose longer
daily shifts (up to 12 hours) if they give 3–4 days of work and more weekly
offs.
This helps industries manage staffing better, and employees can choose schedules that suit them.
2. Bigger Take-Home Benefits for Workers
Your basic salary will now be at least 50% of
your total salary package.
This means:
●
Higher PF contributions
●
Better pension amounts
●
Stronger social security
Employees will get more long-term benefits, though the immediate take-home salary may slightly reduce.
3. Stronger Social Security for All Workers
The new Labour Code expands protection to:
●
Gig workers
●
Platform workers (like delivery
partners)
●
Contract workers
●
Unorganized sector workers
They now get access to schemes related to insurance, pension, and maternity benefits.
4. Faster Dispute Resolution
Workers can now get quicker help through:
●
Fair grievance systems
●
Faster settlement of disputes
●
Clear rules for layoffs and
closures
This brings more transparency to the workplace.
5. Safer and Healthier Workplaces
The Occupational Safety Code sets minimum
safety standards for all industries.
It ensures:
●
Better working conditions
●
Clean and safe environments
●
Regular health check-ups for
workers in risky jobs
215.3) Impact on Employees
The new Labour Code will bring:
●
Clearer rights
●
Better job security
●
Improved social security
●
More predictable working hours
●
Higher PF and retirement benefits
Overall, it strengthens the future of workers
while supporting the growing Indian economy.
215.4) Impact on Employers and Industries
Businesses will benefit through:
●
Simplified compliance
●
Uniform laws across states
●
Easier hiring and restructuring
●
Reduced paperwork
●
More flexibility in managing
workforce strength
This will help companies become more
competitive globally.
215.5) A Step Toward a Modern Workforce
India’s new Labour Code is more than just a
legal change—it is a mindset shift.
It tries to balance growth with protection,
flexibility with stability, and efficiency with fairness.
As industries expand and new job categories
emerge, these reforms will play a major role in shaping the future of
employment in India.
-Team Yuva Aaveg
Praveen Kumar Maurya
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