By Admin 
India’s New Labor Codes: There is a wide discussion these days about the new labor code implemented in the country, because it can have far-reaching effects on issues like gratuity, salary structure, gig workers, women’s night shifts and contract work. Four new labor codes – Wage Code 2019, Industrial Relations Code 2020, Social Security Code 2020 and Occupational Safety, Health and Working Conditions Code 2020 – implemented across the country from November 21, 2025, have replaced 29 old labor laws that were in place since independence.
Why were new labor codes brought?
The purpose of bringing these laws was to simplify and uniform the labor system in accordance with the changing work culture, technology and new forms of employment, but experts believe that there is still ambiguity on many important points.
Speaking to ABP Live, IIMC Professor Shivaji Sarkar said that even though the new laws have been introduced as reforms, the situation regarding the definition of DA and salary is not completely clear. He said that if the allowances exceed 50 percent of the total salary, then it has been said that they should be included in ‘wages’, but no concrete guidelines have been given to control the salaries decided by the industry, due to which employers can get more benefits and employees can get limited benefits.
What are the important changes?
According to him, there is still a provision of eight hours of duty as before and work more than that will be considered overtime, and workers associated with digital and audio-visual media have also been brought under its purview, but how much this will actually benefit the employees will become clear only in the future.
These questions are arising
Shivaji Sarkar expressed concern that the promotion of contract work and abolition of the Wage Board could increase social discontent, as this could weaken the security of permanent employment. Although bringing gig and freelance workers under the legal ambit is a positive step, there are no concrete guarantees in the law on how their wages, social security and rights will be ensured.
He also raised the question that when even the regular employees remain afraid of losing their jobs, then how will the workers from the weaker section be able to resort to the courts again and again for justice. Overall, the new labor code is giving the impression that it may be easier for employers to fire employees, while there is less clarity regarding the rights and protections of employees, in such a situation it is necessary for the government to clearly define the rights, obligations and benefits contained in these laws, so that both workers and employers can get the benefit of a balanced and equitable system.