New Delhi (ABC Live): On 21 November 2025, the Union Government activated the long-awaited Four Labour Codes, formally replacing 29 central labour laws with new frameworks for wages, dispute resolution, social security, and workplace safety. Although the Government immediately described this shift as “transformational,” the deeper consequences extend far beyond legal consolidation. Indeed, while the reforms appear to modernise labour protections, meaningful justice depends on whether these rights—promised in text—become enforceable realities for workers of all genders, employment categories and bargaining capacities.

Table 1: Key milestones in India’s Labour Code reform (2015–2025)

Where the Labour Codes expand social justice

1) Wage rights shift from selective privilege to a universal guarantee

For decades, millions remained outside wage regulation because their jobs were not “scheduled.” Consequently, wage justice existed only for workers lucky enough to fall within legally listed occupations. The Code on Wages, 2019, dismantles this exclusion, promising minimum wages and timely payment to all workers, which therefore transforms wage protection from a fragmented entitlement into a universal right. As a result, Articles 39 and 43—which urge living wages and humane working conditions—gain more tangible force.

2) Social security moves beyond factory-based employment

India’s official data highlights a sharp expansion in social-security coverage—from 19% of the population in 2015 to over 64% by 2025. While this increase partly reflects earlier schemes, the Codes extend protection to gig workers, migrant labour, fixed-term employees, and individuals in hazardous workplaces. Consequently, benefits no longer depend solely on industrial employment.

Table 2: India’s social-security coverage – 2015 vs 2025

Therefore, if enforcement follows intention, Articles 41 and 42—which obligate public assistance for sickness, maternity and old age—could gain operational meaning across diverse worker groups rather than remaining aspirational.

3) Gender and LGBTQ+ protections enter mainstream labour law

India’s Codes explicitly prohibit wage discrimination based on gender identity, rather than merely “sex.” Moreover, they allow workers of all genders—including those engaged in hazardous or night-shift roles—to participate in a wider range of occupations, provided consent and safety protocols are assured. Consequently, the Codes align with the Supreme Court’s NALSA judgment, which declared gender identity integral to dignity under Articles 14 and 21.

Strong & Explicit Data Note

Indian labour surveys, including PLFS, categorize workers only as “female” and “male.” These categories exclude non-binary, gender-diverse and transgender workers from statistical recognition. Nevertheless, the Labour Codes outlaw discrimination regardless of gender identity. Therefore, India’s data practices must evolve if social justice claims are to be measured accurately.

Table 4: Labour Force Participation Rate (PLFS)

*Binary terms reflect PLFS methodology, not ABC Live’s gender definitions.

As participation increases, the burden on policy shifts accordingly. Workers entering labour markets require more than job access; they need safety, dignity, equal pay, and enforceable rights, rather than symbolic inclusion.

Where the Codes weaken protections and create conditional rights

1) Retrenchment becomes easier for employers, not workers

The Industrial Relations Code raises the retrenchment threshold from 100 to 300 workers. Although this change may be justified as “flexibility,” it simultaneously undermines collective job security by making mass lay-offs far easier. Therefore, economic shocks, management shifts, or political turnover could disproportionately push risk downward onto workers, especially those in mid-sized enterprises.

2) Strikes become procedurally harder, diluting collective bargaining

Strikes now require stricter advance notice, and the law treats mass casual leave as a strike. Although promoted as “industrial peace,” such provisions reduce workers’ leverage. Consequently, fairness becomes contingent on managerial goodwill rather than shared bargaining strength. Without strong collective agency, statutory rights risk becoming symbolic rather than enforceable.

3) Gig workers are recognised but still denied employee status

The Codes require aggregators to contribute up to 2% of turnover to gig-worker welfare, yet they stop short of classifying such workers as employees. Consequently, gig workers remain outside protections for unfair dismissal, minimum wage guarantees, and collective dispute mechanisms. Therefore, their recognition becomes conditional, and their social security remains detached from core labour rights.

Table 3: India’s labour regime before vs after the Codes

Constitutional Test: Do these Codes deliver justice or conditional rights?

Therefore, while the Codes grant entitlements, they weaken empowerment, and justice without bargaining power risks becoming merely decorative.

ABC Live Verdict

India’s Labour Codes expand universal wage rights, broaden social protection, and affirm inclusive gender protections. Nevertheless, they also dilute collective bargaining, weaken job security for mid-sized enterprises, and restrict the enforceability of rights for emerging labour groups such as gig workers. Consequently, their potential for social justice hinges on strong implementation, judicial interpretation favouring rights, and organised labour demanding enforcement.

Thus, the Codes create pathways to social justice, yet they embed structural asymmetries that could stall or reverse gains unless monitored vigilantly.

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References

1. Business Standard. (2025, November 21). 4 labour codes take effect nationwide: Here’s what’s changing for workers. Business Standard. https://www.business-standard.com/finance/personal-finance/4-labour-codes-take-effect-nationwide-here-s-what-s-changing-for-workers-125112100866_1.html
2. Government of India, Ministry of Labour & Employment. (2020). The Industrial Relations Code, 2020 (Act No. 35 of 2020). https://prsindia.org/billtrack/the-industrial-relations-code-2020
3. Government of India, Ministry of Labour & Employment. (2020). The Code on Social Security, 2020 (Act No. 36 of 2020). https://prsindia.org/billtrack/the-code-on-social-security-2020
4. Government of India, Ministry of Labour & Employment. (2020). The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020). https://prsindia.org/billtrack/the-occupational-safety-health-and-working-conditions-code-2020
5. Government of India, Ministry of Labour & Employment. (2019). The Code on Wages, 2019 (Act No. 11 of 2019). https://prsindia.org/billtrack/the-code-on-wages-2019
6. Government of India. (2025, November 21). Four Labour Codes herald transformational change: Better wages, safety, social security & enhanced welfare for India’s workforce (Press release). Press Information Bureau. https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2192463
7. Government of India. (2022-23). Periodic Labour Force Survey (PLFS) Annual Report 2022-23 — key highlights. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1966154
8. LiveMint. (2025, October 25). Swiggy, Zomato… to contribute up to 2 % of turnover as India unveils new labour codes. LiveMint. https://www.livemint.com/economy/swiggy-zomato-blinkit-others-to-contribute-up-to-2-of-annual-turnover-as-india-unveils-new-labour-codes-11763724130172.html