1.Four Labour Codes Reforms (Labour Codes)
What & Where
India’s labour reforms consolidate 29 pre-Independence Acts into four pan-India Labour Codes (wages, IR, social security, OSH).
Aim: simplify compliance, expand worker protection, align with digital-economy workplace realities.
Applicable across organised, unorganised, gig, migrant and platform labour nationwide.
Quick Facts for MCQs
Legal & Policy
- Consolidation; single licence, return, registration; uniform wage definition; inspector replaced by facilitator.
- Decriminalisation converts minor breaches to monetary penalties, enabling compounding.
- Mandatory 14-day strike notice, trade-union recognition at 51 % membership.
Economic Angle
- Flexibility; fixed-term contracts with full benefits encourage project hiring and investment inflows.
- Digital self-assessment, time-bound EPF inquiry, universal ESIC improve ease-of-doing-business rankings.
- Higher retrenchment threshold lowers regulatory exit cost, potentially boosting scale efficiencies.
Social Concerns
- Universal minimum wage, national floor wage guard against regional under-payment.
- Social-Security Fund plus aggregator levy extends maternity, life, pension to gig/platform workforce.
- Women allowed night shifts with consent; migrant workers get annual journey allowance, portability.
Progress Status
- Central rules framed; 24 States/UTs issued draft rules, full enforcement still pending.
- Businesses awaiting uniform notification; transitional payroll, HRIS adjustments on hold.
- Trade unions allege dilution of job security; employers seek clarity on wage-component definition.
Key Data Points
| Feature | Data-Point |
|---|---|
| Old Acts merged | 29 |
| Number of new Codes | 4 |
| Wage Code enactment year | 2019 |
| Other three Codes enactment year | 2020 |
| Lay-off approval threshold | 300 workers (earlier 100) |
| Overtime rate under Wage Code | 2× normal wage |
| Gratuity eligibility for FTE | After 1 year service |
| Daily / weekly hours cap | 8 hrs; 48 hrs |
Related UPSC Prelims PYQs
The Code on Wages was notified by the Government of India in the year
भारत सरकार द्वारा अधिसूचित निम्नलिखित श्रम संहिताओं में से किसमें केंद्रीय श्रम अधिनियमों, यथा कारखाना अधिनियम, 1948 और खदान श्रम अधिनियम, 1951 के विशेष उपबंध को शामिल किया गया है?




