Labour laws (also known as employment laws) mediate the relationship between workers, employing entities, trade unions, and the government. Labour Laws emerged when Employers tried to restrict the powers of Worker’s Organisations & keep labour costs low. Employment Laws in India have traditionally been governed by contract as well as various legislations, both at the central and state level. With the objective to simplify, modernize, rationalize and consolidate the various legislations with respect to employment, wages, industrial disputes and other relevant labour/employment related matters, Ministry of Labour and Employment (“Ministry”) introduced four bills in 2019 to amalgamate 29 central laws related to labour laws. These bills have been codified and enacted as:
- The Code of Wages, 2019.
- The Industrial Relation Code, 2020.
- The Occupational Safety, Health and Working Conditions Code, 2020 and
- The Code on Social Security, 2020.
The Indian Parliament passed these four labour codes in the 2019 and 2020 sessions. While the Parliament passed The Code on Wages in August 2019, the other three labour legislations, namely, The Industrial Relations Code, 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Social Security, 2020 were passed by the Parliament in September 2020. These four codes will consolidate 44 existing labour laws.
According to sources in the Ministry of Labour, the new wage code had to be implemented from October 1,...
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