Lok Sabha Question No. 4904 (UNSTARRED), answered on 2026-03-23
Subject: Fixed Term Employment and Universal Minimum Wages
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Rajesh Verma, Smt. Shambhavi, Dr. Lata Wankhede, Shri Vishaldada Prakashbapu Patil

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 4904

## TO BE ANSWERED ON 23.03.2026

## FIXED TERM EMPLOYMENT AND UNIVERSAL MINIMUM WAGES

4904. SHRI VISHALDADA PRAKASHBAPU PATIL:

SMT. SHAMBHAVI:

SHRI RAJESH VERMA:

DR. LATA WANKHEDE:

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

- (a)whether the Government is prioritizing the notification of key proworker provisions under the four Labour Codes, specifically "Fixed Term Employment" and "Universal Minimum Wages" and if so, the details thereof;
- (b) whether the rationale for "Fixed Term Employment" is to grant the same statutory benefits by including pro-rata gratuity after just one year of service as permanent employees by eliminating exploitation of the contract workers and if so, the details thereof;
- (c) the details of consensus building with State/UT Governments to ensure a uniform rollout of the "Floor Wage" across the country, preventing "wage shopping" by industries;
- (d) the details of safeguards ensuring that the flexibility provided to industries  does  not  compromise  the  job  security  and  dispute resolution mechanisms available to workers; and
- (e)  the  manner  in  which  the  said  modern  codes  balance  "Ease  of Doing Business" for employers with "Ease of Living" for employees, fostering a harmonious industrial environment?

## ANSWER

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

(a) to (e): The Industrial  Relations  Code,  2020  enacted  by  Central Government  has  the  provision  of  Fixed  Term  Employment  which makes a worker engaged for a fixed period of time eligible to get the same wages allowances, hours of work and other statutory benefits as  that  of  a  permanent  worker  doing  same  or  similar  work.  The worker is also eligible for pro-rata gratuity after one year of service.

The Code provides for safeguards against layoffs, retrenchment  and  closure  in the form  of prior permission of appropriate  government  for  industrial  establishments  with  300  or more  workers,  mandatory  notice,  retrenchment  compensation  and reskilling  fund  for  all  retrenched  workers.  The  code  also  has provisions  for  dispute  resolution  through  conciliation  officers  and industrial tribunals.

The Code on Wages, 2019 universalizes the applicability of minimum wages across employments and ensures timely payment of wages to all employees. The code empowers both the Central as well as State Governments as appropriate governments to fix, review and revise the minimum rate of wages for the establishments in their spheres. The Code further mandates the Central Government to fix a floor wage, below which no state can fix its minimum wages.

The Occupational Safety, Health and Working Conditions Code, 2020 provides a uniform legal framework to ensure the welfare, health, and safety of workers across all sectors, while simultaneously promoting  ease  of  doing  business  through  simplified  compliance mechanisms.

The Code on Social Security, 2020 extends social security benefits  like  provident  fund,  gratuity,  maternity,  compensation, disablement and sickness benefits etc. to all employees and workers in the organised and unorganised sectors.

The  four  codes  have  been  enacted  after  simplification, amalgamation and rationalization of 29 existing Central Labour Laws to make compliances simpler while ensuring workers safety, health and welfare.

The codes have been made effective from 21 st  November 2025.

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