The new labour codes – which merged 29 existing laws – primarily apply to the formal sector, leaving the vast majority of the Indian workforce outside its ambit. https://thewire.in/labour/why-the-new-labour-codes-do-little-for-indian-workers
Four new labour codes were enacted through parliament in 2019 and 2020 by the Union Ministry of Labour and Employment. These codes – which merged 29 existing laws – relate to wages, industrial relations, social security and occupational safety and healthy working conditions.
However, over five years later, the codes are yet to be implemented. Meanwhile, all central trade unions, including the Bharatiya Majdoor Sangh (BMS) which opposed certain provisions, have registered their opposition to the codes.
Among the new labour codes, only the code on wages and parts of the code on social security extend to informal workers. The remaining codes primarily apply to the formal sector, which comprises fewer than 50 million workers out of a total workforce of approximately 610 million. In essence, the new labour codes consolidate 29 existing laws, most of which were already limited to the formal sector. This means that, since independence, the vast majority of workers have remained outside the scope of labour laws.
by Kingshuk Sarkar and Santosh Mehrotra
08/06/2025