Labour Reform- An Era of Substantial Change

Ministry of Labour and Employment, Government of India has conveyed its firm intent that forty four central legislations pertaining to labour, industrial and environment related will be merged and subsumed into four codes.

The first code (i.e. Code on wages, 2019) has already become a law on August 08, 2019 after receiving assent of President of India though the Government, only the applicability has to be notified.


There is a likelihood that all these four codes became live effective April, 2020, hence there is a need for organization to evaluate it’s potential impact on operations, so as to welcome the said change.

The below is a brief write up summarizing the basic introduction about the changes introduced –

COLLECTIVE OBJECTIVE OF THE ABOVE CODES-

  • Standardizing the existing more than 2000 wage rates depending upon the geographical living standards and skill set instead of type of employment
  • Appointment of facilitator instead of Inspector
  • Easier and faster way out available for compliance management
  • Will increase the payout of the employer due to increase labour cost
  • Limited compliance cost
  • Clarification with regard to various existing grey areas
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