India Rolls Out Four Labour Codes, Expanding Gratuity and Gig Worker Rights
India Rolls Out Four Labour Codes, Expanding Gratuity and Gig Worker Rights
India unveils four unified labour codes, expanding gratuity eligibility, night shifts for women, and rights for gig workers in a move to modernize labor laws.
The Centre has rolled out four consolidated labour codes, bringing 29 existing laws under the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code. The reform aims to simplify compliance, modernize provisions, and safeguard workers’ rights while boosting ease of doing business across the country.
Key changes include gratuity eligibility for fixed-term employees after one year of continuous service, with 50% of total remuneration added back to compute wages for gratuity, pension, and social security benefits for consistency.
Working hours are also updated: businesses can schedule 8-12 hour shifts, with a weekly cap of 48 hours.
Women workers can now be employed in night shifts with safety measures, overturning earlier state restrictions in some industries.
Gig workers are included under the codes, with provisions moving toward protections around layoffs and access to social security, signaling a shift toward broader coverage for non-traditional workers.
Officials describe the rollout as a nationwide, uniform implementation intended to formalize the labor ecosystem, promote timely wages, and expand social security while preserving worker rights and welfare. The reforms are presented as a milestone toward a future-ready economy that supports growth and development across sectors.
Cover image source: Labour laws passed by Parliament in 2020 comes into effect today 🔗
