New labour codes, consolidating 29 laws into four, aim to create frictionless supply chains and ensure universal wage coverage.
The Union Ministry of Labour & Employment has introduced new labour codes aimed at overhauling India’s industrial landscape, with a focus on creating frictionless supply chains and ensuring universal wage coverage across all sectors. This was highlighted by Alok Chandra, Senior Labour and Employment Advisor at the Ministry, during the Annual Convention of the All India Association of Employers (AIOE) on December 15, 2025.
The fundamental principle of the legislative change is the merger of 29 distinct and frequently contradictory labour laws into four unified, comprehensive codes. This consolidation is designed to eliminate the regulatory inconsistencies that have historically hampered industrial operations.
- Standardisation: Chandra explained that the new framework achieves consistency across definitions and establishes national safety standards. This unified regulatory environment is expected to facilitate a “very smooth supply chain” across different states and industries.
- Reduced Regulatory Burden: Employers, as represented by Jasbir Singh, President of AIOE, anticipate a significant reduction in the regulatory burden and simplified compliance procedures, which will directly support business operations.
The codes introduce significant expansions in worker protection and equity:
- Universal Minimum Wage: Wage reforms are a major component, moving from 45 scheduled employments to a universal minimum wage across all sectors.
- National Floor Wage: The introduction of a national floor wage will set a threshold below which no state can fix minimum wages, effectively addressing regional disparities and promoting equity.
- Social Security and Skilling: Workers will receive wider social security measures and safety provisions. The codes also establish a reskilling fund, partially financed by amounts credited from the compounding of offences, to expand skilling infrastructure.
- Recognition of Gig Work: Significantly, the codes grant social security coverage and official recognition to gig and platform workers. Ravi Peiris of the ILO DWT for South Asia praised this move, noting that it demonstrates India’s intention to reduce informality in the workforce.
While the codes create a progressive structure, AIOE emphasised that enabling measures will be essential for successful implementation. These include:
- Achieving state-level uniformity.
- Phased implementation for micro, small, and medium enterprises.
- Establishing a unified digital compliance system.
- Capacity-building programmes for all stakeholders.
The reforms have been internationally acknowledged, with the International Organisation of Employers (IOE) and the ILO recognising India’s constructive role in global labour discussions.
SOURCE – ET INFRA
