Lok Sabha Question No. 2463 (UNSTARRED), answered on 2025-12-15
Subject: Benefits under New Labour Codes
Ministry: LABOUR AND EMPLOYMENT
Asked by: Thiru Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 2463 TO BE ANSWERED ON 15.12.2025

## BENEFITS UNDER NEW LABOUR CODES

## 2463. THIRU DAYANIDHI MARAN:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) whether the Government is aware of media-reports of widespread tradeunion rejection describing the notified labour codes as 'anti -worker' and if so, the details thereof;
- (b) the  details  of  the  concrete  consultations  held  with  unions  and workers  representatives  along  with  their  key  demands  before notifying the four new codes;
- (c) the details of the timeline of the implementation of the said code along with rollout, rules- notification dates, transitional safeguards for workers and benchmarks for social-security coverage, State/UTwise;
- (d) the  manner  in  which  the  Government  justify  the  raising  of  the threshold for approval of layoffs/closures from 100 to 300 workers in the Industrial Relations Code and the assessment made on the impact  likely  to  have  on  workers'  job  security  and  bargaining power; and
- (e) the details of mechanisms are in place to ensure that gig, platform, contract  and  informal  workers,  especially  in  sectors  such  as textiles,  construction  and  Micro,  Small  &  Medium  Enterprises (MSMEs) will receive the promised minimum wages, social security and grievance redressal under the new frameworks?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): The  four  Labour  Codes  were  passed  after  extensive consultations with all stakeholders including State/UT Governments. The comments/concerns raised by the stakeholders were acknowledged and examined before the passage of four Labour Codes.

Several  National  and  Regional  Labour  Conferences  were held with States/UTs to discuss issues relating to four Labour Codes. The  Ministry  is  also  interacting  with  all  stakeholders  including

States/UTs for smooth implementation of the four Labour Codes.

Further, various concrete provisions have been made in the Industrial Relations Code, 2020 to protect the interest of workers. The collective  bargaining  of  workers  has  been  strengthened  and  made statutory  through  recognition  of  Negotiating  Union  and  Negotiating Council. The provision of two-member Industrial Tribunal will ensure faster dispute resolution.

- (c): The four Labour Codes, namely, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and  the  Occupational  Safety,  Health  and  Working  Conditions  Code, 2020  have  come  into  force  with  effect  from  21.11.2025  across  the country.  The  States/UTs  are  still  in  process  of  finalizing  the  Rules under the four Labour Codes.  As per available information, Code wise status of pre-published Rules by States/UTs are as under:
- a) The Code on Wages, 2019: 34
- b) The Industrial Relations Code, 2020: 35
- c) The Code on Social Security, 2020: 34
- d) The  Occupational  Safety,  Health  and  Working  Conditions  Code, 2020: 35
- (d) to (e): The provision of Fixed Term Employment (FTE) has been introduced in the Industrial Relations Code, allowing engagement of workers  for  a  specified  duration.  Such  workers  are  entitled  to  all benefits, at par with permanent employees performing similar work. This  provision  is  expected  to  reduce  contractualization,  increase employability  and  meet  workers'  aspirations.  They  are  eligible  for gratuity after just one year, instead of five years.

The increase in threshold from 100 to 300 will promote employment formalisation,  reduce  procedural  hurdles  and  simplify compliance requirements.

The Code has provisions for prior notice before retrenchment and retrenchment compensation equivalent to 15 days wages  for  each  completed  year  of  service  to  be  given  to  the retrenched worker. In addition to the above, 15 days wages is to be given for re-skilling.

Key features of the Labour Codes relating to protection of workers' right as well as their welfar e are as under: -

- Minimum wages become a statutory right for all employees in every sector, organised or unorganised.
- A new Floor Wage introduced.
- Rules on timely payment and no unauthorised deductions now apply to all employees
- Safe and healthy working conditions for all workers.
- Provision for annual health check-up and formalisation of employment by issuing appointment letters to all employees.
- Provision of Workers' Re -skilling Fund for retrenched workers.
- Women are allowed to work at night, and in all types of work and establishments subject to their consent and safety.
- Employees' State Insurance Corporation (ESIC) coverage on voluntary basis for establishments having less than 10 employees
- Benefits under ESIC can also be made  applicable through notification to an establishment which carries on hazardous or lifethreatening occupation in which  even  a single employee  is employed.
- Provision  of  benefits  to  unorganised  workers  and  to  their  family members through ESIC or Employe es' Provident Fund Organisation (EPFO)
- Setting up of a Social Security Fund for formulating schemes for unorganised workers, gig and platform workers.

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