Explainer

What The New Labour Reforms Mean For India’s Workforce

The government has implemented  new four labour codes, which is the biggest reset in the labour workforce since independence. This new law replaces 29 separate laws and brings the country’s decades-old labour framework under one system. These codes deal with wages, industrial relations, occupation safety & health and social security.

Here’s a quick breakdown that workers should know about:

GRATUITY AFTER ONE YEAR

  • A uniform wage definition now applies across all labour laws and changes salary and gratuity calculations
  • Fixed-term employees will now be eligible for gratuity after 1 year instead of 5

SOCIAL SECURITY FOR GIG WORKERS

  • Gig and platform workers are now officially recognised under labour law
  • Aggregators must contribute to a fund that supports insurance, health coverage, disability assistance and old-age benefits

WOMEN CAN WORK NIGHT SHIFTS

  • The new rules allow women to work night shifts in all sectors, including mining, manufacturing, logistics and even hazardous jobs as long as they give consent
  • Adequate safety measures should be provided

MANDATORY HEALTH CHECK-UPS

  • Industries such as textiles, beedi manufacturing, plantations, media, dock work and audio-visual production are now brought under uniform safety protections
  • Annual health check-ups will be mandatory in several sectors. Employers must provide free yearly health check-ups to all workers above the age of 40
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