New Delhi: Amid criticism from opposition parties, a senior Law Commission official on Sunday described the four labor laws as a reform that offers the potential to create a “more inclusive and future-ready labor market” in the country.
The official said the laws are among “the most significant and far-reaching labor reforms implemented in decades.”
For many years, labor regulation in India has evolved gradually, giving rise to multiple laws with different definitions, varying thresholds and varying compliance obligations.
“The four-code framework seeks to address this complexity by bringing together concepts around wages, safety standards and social security, while aligning regulation with a labor market that is no longer limited to traditional employment relations,” Anju Rathi Rana, member secretary of the Law Commission, told PTI.
Opposition parties, along with 10 central trade unions, opposed the four new labor laws, describing them as “anti-labor” and “pro-corporate.” They claimed that the laws facilitate “hire and fire” policies, restrict union rights, and reduce Social Security.
Rana said the four laws, the Wages Act, the Industrial Relations Act, the Social Security Act, and the Occupational Safety, Health and Working Conditions Act, represent an important structural shift within the country’s labor law framework.
“In my view, they are among the most significant and far-reaching labor reforms implemented in decades. The four integrated laws represent a major structural shift in the country’s labor law framework,” the former legal secretary of the federation said.
She pointed out that blogs brought about several fundamental changes. The Wages Law of 2019 enables the central government to set minimum wages and standardize key definitions related to wages.
The Social Security Act of 2020 officially recognizes informal workers, freelancers and platforms, expanding the legal framework for social protection. She said that the Industrial Relations Act 2020 unifies the laws governing trade unions, standing orders and industrial disputes, with the aim of providing a more regulatory framework for industrial relations.
The OSH-WC law brings together standards of occupational safety, health and working conditions within one modern framework.
“However, these labor laws only provide the foundation. Legislative consolidation is just the beginning. From a policy perspective, this reform offers the potential to create a more inclusive and future-ready labor market. However, its success and impact will depend on coordinated implementation across states and maintaining a balance between flexibility for institutions and meaningful safeguards for workers,” she added.
A senior Indian Legal Service official said the Labor Ministry has recently outlined a structured set of employer compliance under new labor laws, reflecting the move from legislative consolidation to practical implementation.
“The true test of labor laws will lie not only in simplification, but in whether they translate legal consolidation into real, enforceable and enforceable worker protections,” she said.
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