Why in News
International Workers’ Day (May 1, 2026) was observed across India in the first May Day after the country’s four labour codes — consolidating 29 central labour laws — came into force nationwide on November 21, 2025. The codes were enacted between 2019-2020 but their day-to-day operationalisation also requires state-level rules. As of May 2026, the Centre has notified rules for all four codes; state rule frameworks remain inconsistent — some states have notified rules in full, others in part, some not at all.
The Four Labour Codes
1. Code on Wages, 2019
Replaces: Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965, Equal Remuneration Act 1976.
Key provisions:
- Universal minimum wage applicable to all employment (formerly only “scheduled employments”)
- Statutory floor wage for all of India (state minimum wage cannot fall below)
- Equal pay for equal work — gender-neutral
- Bonus payment retained for low-wage workers
2. Code on Industrial Relations, 2020
Replaces: Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947.
Key provisions:
- Threshold for retrenchment without government approval increased — firms with up to 300 workers (earlier 100) can retrench without prior approval
- New definitions of “industrial dispute” and “strike”
- Mandatory 14-day notice for strikes
- Recognition of single negotiating union (with 51%+ membership) or negotiating council
3. Code on Social Security, 2020
Replaces: Employees’ Compensation Act 1923, Employees’ State Insurance Act 1948, Employees’ Provident Funds Act 1952, Maternity Benefit Act 1961, Payment of Gratuity Act 1972, Building and Other Construction Workers Acts 1996, Cine Workers Welfare Fund Act 1981, Unorganised Workers Social Security Act 2008.
Key provisions:
- Social security expansion to gig and platform workers for the first time (Section 2(35) and 2(60))
- National Social Security Board for unorganised workers
- ESIC and EPFO restructuring
- Maternity benefits made universal across all firms
4. Code on Occupational Safety, Health and Working Conditions (OSH), 2020
Replaces: Factories Act 1948, Mines Act 1952, Dock Workers Act 1986, Plantation Labour Act 1951, Contract Labour Act 1970, Inter-State Migrant Workmen Act 1979, Building and Construction Workers Act 1996, Cinema (Regulation) Act 1952, Beedi and Cigar Workers Act 1966.
Key provisions:
- 8-hour working day cap; overtime regulated
- Annual medical examination for hazardous industries
- Free annual health check-ups for workers above 45
- Migrant workers definition expanded; portability of benefits
What Has Changed (2025-2026)
| Area | Status (2026) |
|---|---|
| Codes brought into force nationwide | November 21, 2025 |
| Central rules notified | ✅ All four codes |
| State rules drafted | Most states have drafted rules but not all notified |
| Effective date | Different states have different timelines |
| EPFO/ESIC integration | Ongoing |
| Gig worker registration | Started under e-Shram portal (~30 crore registrations) |
The e-Shram portal is the practical enrollment mechanism for unorganised workers, with over 30 crore registrations as of 2026.
Critiques and Controversies
| Concern | Source |
|---|---|
| 300-worker threshold increases firing flexibility | Trade unions (CITU, AITUC) |
| Gig worker definition incomplete | Worker advocacy groups |
| Strike restrictions weaken union power | Left-aligned trade unions |
| State implementation slow | State-level union representation |
| Migrant worker portability untested | Inter-state migrant rights groups |
The 2020-2021 farmers’ agitation extended to labour codes; trade unions called several all-India strikes during 2020-2024 demanding repeal or significant amendment.
India’s ILO Convention Record
India is a founding member of the International Labour Organization (ILO, 1919) and has ratified 47 ILO Conventions, including 6 of 8 fundamental conventions:
- Forced Labour Convention (29) — ratified 1954
- Abolition of Forced Labour Convention (105) — ratified 2000
- Equal Remuneration Convention (100) — ratified 1958
- Discrimination Convention (111) — ratified 1960
- Minimum Age Convention (138) — ratified 2017
- Worst Forms of Child Labour (182) — ratified 2017
Not ratified: Freedom of Association (87) and Right to Organise and Collective Bargaining (98) — India views these as already covered by domestic law.
UPSC Relevance
| Paper | Angle |
|---|---|
| GS3 — Economy | Labour reforms; ease of doing business; informal economy |
| GS2 — Governance | Labour codes implementation; cooperative federalism; state-Centre coordination |
| GS3 — Inclusive Growth | Gig workers; e-Shram portal; social security architecture |
Mains Keywords: Four labour codes, Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, OSH Code 2020, gig workers, e-Shram portal, ILO conventions, ESIC, EPFO, retrenchment threshold
Facts Corner
| Item | Fact |
|---|---|
| Codes enacted | 2019 (Wages); 2020 (IR, SS, OSH) |
| Replaced laws | 29 central labour laws into 4 codes |
| Code on Wages | 2019 — universal minimum wage |
| Industrial Relations Code | 2020 — 300-worker retrenchment threshold |
| Social Security Code | 2020 — first to cover gig workers |
| OSH Code | 2020 — factories, mines, plantations consolidated |
| e-Shram portal | 30+ crore unorganised worker registrations |
| ILO conventions ratified by India | 47 (6 of 8 fundamental) |
| Not ratified | Convention 87 (Freedom of Association); 98 (Collective Bargaining) |
| Founded ILO | 1919 (India is founding member) |
