New Delhi – 4 labor codes prepared by codifying various labor laws of the center and states have come into force in the country. The central government implemented the labor codes despite the opposition of the trade unions. The Labor Codes passed by Parliament in 2020 will come into effect after 5 years.

4 Labor Codes were brought by consolidating 29 labor laws and many other laws of the country. These are the Wage Code which deals with wages, the Industrial Relations Code which deals with industrial relations, the Social Code which deals with social security and the Safety Code which deals with worker-factory safety. Prime Minister Narendra Modi has described the labor codes as the most comprehensive centralized labor reform since independence.

Among the 9 laws that will be repealed are the Employees’ Compensation Act, the ESI Act, the EPF Act, the Maternity Benefit Act and the Gratuity Act. Employees will continue to receive all benefits under the repealed Act as per the new Code. Under the new law, ESI benefits will be available to small firms with less than 10 employees if the employer and majority of employees apply.

The EPF Act will be applicable to all establishments having 20 employees. Under the new code, trade unions are not allowed to strike without 14 days’ notice. If there is a breach of safety regulations in hazardous workplaces, the employer is liable to 2 years imprisonment and a fine of 5 lakh rupees.

English Summary:

India’s New Labor Codes Come into Force: A Major Reform Five Years in the Making