Lok Sabha Question No. 2484 (UNSTARRED), answered on 2025-12-15
Subject: Features of New Labour Codes
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Tatkare Sunil Dattatrey

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 2484 TO BE ANSWERED ON 15.12.2025

## FEATURES OF NEW LABOUR CODES

2484.  SHRI TATKARE SUNIL DATTATREY:

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

- (a) the  details  of  the  salient  features  of  the  new  labour  codes introduced by the Government;
- (b) whether the said codes will enhance the ease of doing business in the country and if so, the details thereof;
- (c) whether the said codes will simultaneously ensure compliance and uphold workers' rights; and
- (d) the  details  of  the  provisions  under  the  new  codes  regarding working hours, overtime pay and to expand social security?

## ANSWER

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

(a) to (d): The four Labour Codes reduce multiplicity of definitions & authorities,  facilitate  use  of  technology  in  enforcement  of  labour laws,  bring  transparency  &  accountability  in  enforcement  and promote employment  generation. Simultaneously, it strengthens the protection available to workers, including unorganized workers, in terms of  statutory  minimum  wage,  social  security  and healthcare of workers. The following are the salient features of the Labour Codes:

- i. Uniform Definitions: Wages, Employee, Worker etc.
2. ii.
3. Leveraging technology: Electronic forms, registers and returns
4. iii.
5. iv.
6. v.
7. vi.
8. vii.
9. viii.
10. Transparency in enforcement
11. Inspector-cum-Facilitator in place of Inspector
12. Randomized Web-based Inspection System
13. Higher female labour force participation
14. Right to work in all roles; work at night with consent
15. Crèche facility in establishments having 50 or more employees
16. Flexibility in fixing working & overtime hours to Appropriate
- ix. Government.

## Code-wise salient features are briefly given hereunder:

## Code on Wages 2019

- Universalisation of  minimum wages to all employments as against scheduled employment in the existing Act.
- ' Floor  Wage '  has  been  made  Statutory  which  will  be  notified  by Central  Government.  Minimum  rates  of  wages  fixed  by  the appropriate Government shall not be less than floor wage.
- Promote gender neutrality and prohibit discrimination in recruitment and wage payment, including transgender.
- •
- Timely payment of wages to all employees.
- Allowances  exceeding  50%  made  part  of  wages  which  will enhance maternity benefits, gratuity, EPF, EPS Contribution, etc.

## Industrial Relations Code 2020

- Fixed Term Employment (FTE) introduced where an employee gets all  the  benefits  at  par  with  permanent  worker.  Proportionate gratuity on completion of 1 year of service.
- Statu tory ' Negotiating Union ' and ' Negotiating Council ' to facilitate collective bargaining.
- Two-Member Industrial Tribunal as against one member for speedy disposal of industrial disputes. Equal representation of employer and employee in Grievance Redressal committee.
- Penalties for violations rationalized and made commensurate with gravity of offence.

## Code on Social Security, 2020

- Social Security cover to all workers including unorganised workers, Gig & Platform workers.
- To cater to new forms of employment, definitions of aggregator,
- gig worker, platform workers introduced
- Universal coverage of ESIC, extended pan-India against in notified districts/areas at present.
- ESIC  benefits  extended  to  establishments  with  less  than  10 employees on voluntary basis
- Mandatory  ESIC  coverage  to  establishments  employing  even single employee, involving hazardous process.

- Universal  coverage  of  EPFO,  now  applies  to  all  establishments employing  20  or  more  employees.  The  existing  provision  of schedule has been removed.

## OSH & WC Code 2020

- The Code provides for universal application of occupational safety, health and welfare standards in all establishments having 10 or more  workers  and  even  for  establishment  with  one  employee, carrying out hazardous or life-threatening occupations.
- Formalization of employment through mandatory issue of appointment letter.
- Employer  to  provide  free  of  cost  annual  health  check-up  for employees above the specified age.
- Definition  of  Inter-State  Migrant  Worker  expanded  that  includes migrant workers employed by contractor, and also self-migrated workers. They are entitled for (a) annual  lump-sum travel allowance, (b) portability of benefits
- Women workers are allowed to work in all establishments, for all types of work including during night subject to their consent and safety.

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