Dawn of a new era for the workforce

India has stepped into a transformative new era of labour governance. With the long-awaited implementation of the four labour codes, the country has undertaken one of the most sweeping reforms in its labour regulatory framework since Independence. These reforms - hailed by the government as historic - seek not only to modernise outdated laws but also to extend dignity, security, and an opportunity to every worker across the country.

For decades, India’s labour ecosystem was governed by 29 separate laws, many of them drafted in another era that could not address the realities of a rapidly changing economy. Fragmentation, ambiguity, and complex compliance requirements were common criticisms. The new labour codes aim to reverse this by integrating these laws into four comprehensive pillars: the Code on Wages (2019), Code on Social Security (2020), Industrial Relations Code (2020), and Occupational Safety, Health and Working Conditions Code (2020). Together, they promise simplicity, transparency, and efficiency—values that have been missing from India’s labour market for far too long.

The most consequential shift lies in the extension of legal protections to nearly 40 crore workers, including those long left out of the formal labour net: gig workers, platform workers, unorganized-sector labourers, and fixed-term employees. Minimum wages, social security, and gratuity—a safety net once confined to the organized sector—are now slated to become universal guarantees.

For states like Andhra Pradesh, where a large portion of the workforce operates in unorganised sectors, this change is particularly significant. It offers millions of families a buffer against economic instability and ushers in a more humane and inclusive labour landscape.

One of the most tangible changes for workers will be the restructuring of work hours and leave eligibility. Retaining the eight-hour workday and 48-hour workweek, the new codes introduce flexibility in how these hours could be distributed—allowing, for example, four 12-hour workdays or five 9.5-hour days. While this could benefit industries with fluctuating demand, it also raises questions about ensuring safety and avoiding exploitation. The onus will lie on state governments and industry bodies to enforce these provisions with balance and prudence. More progressive, however, is the reduction of eligibility for annual paid leave from 240 working days to 180. This is especially impactful in sectors like manufacturing, retail, textiles, and construction, where workers often struggled to accumulate sufficient days. Access to leave earlier in the year is not a trivial change—it improves worker well-being, retention, and long-term productivity.

Workers above 40 are now entitled to free annual health check-ups, a reform aligned with global standards of preventive care. For plantation workers and those employed in hazardous sectors, extension of ESIC medical benefits marks an overdue rectification of historical inequities. For a nation aspiring to lift both the quality of labour and human capital, such health-oriented policies are foundational.

The codes reinforce equal wages for women and remove discriminatory barriers in employment—an important step toward gender parity in India’s labour market. By enabling women to seek employment across sectors without artificial restrictions, the codes contribute to expanding female labour force participation, a long-standing challenge for the economy.

Beyond worker welfare, the codes aim to create a more predictable and industry-friendly environment. Single registrations, simplified compliance, and unified returns reduce bureaucratic burdens that have historically hampered investment and employment generation. By modernising labour governance, India positions itself as a more attractive destination for global and domestic investors.

The government has framed the labour codes as a crucial step toward building a Viksit Bharat by 2047—a future where economic growth is matched by social justice. The intent is laudable, but implementation will determine success. State-level adoption, clarity in rules, employer compliance, and effective enforcement mechanisms will shape whether these reforms live up to their promise.

Labour reforms of this scale are neither ordinary nor easy. They touch the lives of millions and have the potential to redefine India’s economic trajectory. As these laws take effect, the real test will be ensuring that the vision of dignity, protection, and opportunity for every worker translates from paper to practice. If implemented with sincerity and monitored with accountability, the new labour codes can indeed become a cornerstone in building a fairer, more resilient, and more prosperous India.

(The author is Minister of Labour, Factories, Boilers and Insurance Medical Services, Government of Andhra Pradesh)