Govt gives life to Labour Codes, trade unions, experts debate over consequences

/ 3 min read
Summary

A BMS delegation submitted a detailed charter of demands on several labour related issues, including certain concerns pertaining to the Labour Codes

Organisations are strongly recommended to pause and assess any material employment related actions right now, and seek legal guidance, to ensure that they do not unwittingly fall afoul of these new codes
Organisations are strongly recommended to pause and assess any material employment related actions right now, and seek legal guidance, to ensure that they do not unwittingly fall afoul of these new codes

Even as the Union government announced the implementation of the four long awaited Labour Codes, trade unions responded on predicted lines with the largest Trade Union of the country, the RSS affiliate Bhartiya Majdoor Sangh (BMS), welcoming the implementation of the long awaited Labour Codes while a joint response from 10 other Central Trade Unions termed it ‘anti-worker’ and called for nationwide protests at worksites on November 26.

ADVERTISEMENT
Sign up for Fortune India's ad-free experience
Enjoy uninterrupted access to premium content and insights.

According to BMS, the four Labour Codes are designed to be dynamic and future-ready, addressing the emerging realities of the labour market. “The broadening of wage coverage beyond scheduled employment and extension of social security protection to new and unorganized sectors reflect forward-looking reforms aligned with aspirations of the modern workforce”, Ravindra Himte, General Secretary, BMS said.

Earlier today, a BMS delegation submitted a detailed charter of demands on several labour related issues, including certain concerns pertaining to the Labour Codes, to Mansukhlal Mandaviya, Union Labour & Employment Minister. Himte said the minister assured them that all genuine concerns of BMS will be addressed with utmost sincerity, and if required, necessary steps will be taken, including placing amendments before the Parliament.

The joint platform of the 10 Central Trade Unions including the trade unions affiliated to the Opposition parties like Congress and the Left said they have been resisting the implementation of the Labour Codes since the day they were enacted repealing existing 29 central labour legislations.

“After the Code on Wages was enacted in 2019 immediate protests were observed culminating in a general strike in January 2020. And once the other three labour codes, Industrial Relations Code, Social Security Code, Occupational Safety, Health & Working Conditions Code were enacted in 2020 September immediate protests were held and historic General Strike on 26 November was observed by the Joint Platform of Trade unions along with historic Delhi Chalo of Samyukt Kisan Morcha (SKM). Further several joint actions were observed leading to latest July 9th 2025 General Strike in which more than 25 crores of workers had participated”, a joint statement issued by these CTUs said.

According to them, the Central Trade Unions Joint platform had urged to convene the Indian Labour Conference (ILC) immediately and had urged for scrapping of Labour Codes even in the meeting convened by the Ministry on 13th November on draft Shram Shakti Niti 2025. “Even in the pre-budget consultation meeting held on 20th November by the Ministry of Finance it was urged on behalf of Joint platform of Trade Unions to scrap labour codes and convene ILC, which is not been held after 2015. The government remained obstinately unresponsive”, they said.

Meanwhile, Atul Gupta, Partner - Labour and Employment practice, Trilegal, points out that since the old laws stand repealed now, work will begin on the implementation of State level rules (that have been in draft form so far), as well as several schemes and benefits that the New Codes envisage. “Unfortunately, with no grace period for implementation, organisations will need to take immediate cognisance of the substantive provisions of the Codes that have come into force today, even while they wait for Rules to be formalised. To the extent a new provision cannot be complied with without the accompanying Rules, the government has clarified that existing rules will apply during the transition”, he explained.

Recommended Stories

 According to Gupta, the material changes of potential immediate impact include updates like the new definition of wages (and it’s impact on benefits like gratuity), the need for implementation of updated grievance redressal mechanisms, revised provisions associated with union recognition and bargaining, new leave provisions, a new definition of contract labour and associated compliances, and many more.

 “Organisations are strongly recommended to pause and assess any material employment related actions right now, and seek legal guidance, to ensure that they do not unwittingly fall afoul of these new codes. More clarity will certainly emerge in the ensuing weeks, including as State governments plan to align these new laws with their own state-level strategies and policies to retain and incentivise businesses”, he said.

ADVERTISEMENT
Explore the world of business like never before with the Fortune India app. From breaking news to in-depth features, experience it all in one place. Download Now