{"id":365019,"date":"2026-06-12T19:53:11","date_gmt":"2026-06-12T14:23:11","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=365019"},"modified":"2026-06-12T19:53:11","modified_gmt":"2026-06-12T14:23:11","slug":"rules-for-the-four-labour-codes-vulnerable-workers","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rules-for-the-four-labour-codes-vulnerable-workers\/","title":{"rendered":"Rules for the Four Labour Codes – Vulnerable Workers"},"content":{"rendered":"

UPSC Syllabus: Gs Paper 2- <\/strong>mechanisms, laws, institutions and Bodies constituted for<\/p>\n

the protection and betterment of these vulnerable sections.<\/p>\n

Introduction<\/strong><\/h2>\n

The notification of rules under the four Labour Codes has completed the implementation framework for labour reforms enacted during 2019\u201320<\/strong>, nearly six years after their enactment. The reforms aim to simplify labour laws, improve compliance, expand social security, and support employment generation. However, several provisions in the new rules have drawn criticism from trade unions and academics, who argue that important safeguards relating to job security, wages, gig workers, trade union rights, and worker welfare remain inadequately addressed.<\/p>\n

Background and Rationale of the Labour Codes<\/strong><\/h2>\n
    \n
  1. Need for Labour Law Reform: <\/strong>The Government consolidated 29 labour laws into four Labour Codes to simplify the legal framework and make labour regulation more efficient.<\/strong><\/li>\n
  2. Simplifying Compliance: <\/strong>Multiple laws and authorities created compliance difficulties for employers and enforcement challenges for regulators. The Codes seek to reduce this complexity.<\/li>\n
  3. Modernising Outdated Legislation: <\/strong>Many labour laws were framed in the pre-Independence period. The reforms aim to align labour regulation with present-day economic and technological realities.<\/li>\n
  4. Recommendation of the National Commission on Labour: <\/strong>The Second National Commission on Labour recommended grouping labour laws into a smaller number of comprehensive codes on a functional basis.<\/li>\n
  5. Consultative Legislative Process: <\/strong>The four Codes were enacted after discussions among the Government, employers, industry representatives, and trade unions between 2015 and 2019.<\/strong><\/li>\n
  6. Four Labour Codes Covered: <\/strong>The reforms include the Code on Wages, 2019<\/strong>, Industrial Relations Code, 2020<\/strong>, Code on Social Security, 2020<\/strong>, and Occupational Safety, Health and Working Conditions Code, 2020<\/strong>.<\/li>\n<\/ol>\n

    Key Features and Expected Benefits of the Labour Codes<\/strong><\/h2>\n
      \n
    1. Growing Labour Market Performance: <\/strong>Employment rose from 47.5 crore to 64.33 crore, unemployment declined from 6.0% to 3.2%, and 1.56 crore womenentered the formal workforce between 2017\u201318 and 2023\u201324.<\/li>\n
    2. Improvement in Labour Market Indicators: <\/strong>The unemployment rate declined from 6.0% to 3.2%, while 1.56 crore women entered the formal workforce during the same period.<\/li>\n
    3. Unified Worker Protection Framework: <\/strong>The Codes seek to provide wage security, social security, health protection, and welfare measures through a common legal framework.<\/li>\n
    4. Easier Business Compliance: <\/strong>Uniform definitions, single registration, single return systems, and simplified procedures are intended to reduce regulatory burdens.<\/li>\n
    5. Greater Use of Technology: <\/strong>The framework promotes digital registration, licensing, inspections, and online administration of labour laws.<\/li>\n
    6. Improved Transparency in Enforcement: <\/strong>Risk-based inspections and online processes are expected to strengthen accountability and reduce administrative complexity.<\/li>\n
    7. Support for Economic Growth: <\/strong>The reforms aim to create a business-friendly environment that encourages investment, employment generation, and economic expansion.<\/li>\n<\/ol>\n

      Concerns and Challenges in the New Rules<\/strong><\/h2>\n

      A. Fixed-Term Employment (FTE)<\/strong><\/p>\n