Modi's Labour Reform Game-Changer: How 4 New Codes Transform India's Workforce

Speaking to reporters in the national capital, Goyal termed the new labour codes as "balanced and well-articulated" combination of the 29 laws previously governing the Indian workforce.

He said, "The four Labour codes are an outstanding testament to the trust that PM Modi has earned from all sections of society. The fact that 140 crore Indians have confidence in our PM, and that both employers and workmen organisations have heartily welcomed it. It is a balanced and well-articulated combination of 29 laws in these four Labour codes."

Further, he lauded the reforms in the minimum wages, occupational safety, social security for gig workers, and for women in the workforce.

"It ensures minimum wages, occupational safety, social security for gig workers, and, in a way, opportunities for womenfolk to come into the workforce. It is a game-changer that PM Modi has introduced. I am sure the states will come out with legal frameworks to get the maximum benefit of these labour codes," the Union Minister added.

In a historic decision, the government of India, last Friday, announced that the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 are being made effective with immediate effect.

The four Codes rationalise 29 existing labour laws.

Benefitting women, the Codes prohibit gender discrimination, mandate equal pay, and open doors for women to work across all sectors, including underground mining and heavy machinery, allowing night shifts - subject to their safety and consent. Codes also include flexible provisions such as work-from-home, aiming to boost women's participation in the labour force.

Under the Code on Wages, 2019, all workers will receive a statutory right minimum wage payment. Minimum wages and timely payment will ensure financial security.

While under the Code on Social Security, 2020, all workers, including gig and platform workers, will get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits.

An SBI report stated that the new labour codes could reduce unemployment by up to 1.3 per cent, which would translate into additional employment generation of 77 lakh people.

- ANI