1. Introduction: Labour Codes and the Draft Rules
The Union Labour Ministry has pre-published draft Rules for the four Labour Codes on 30th December 2025, inviting public feedback over 45 days. These Rules operationalise the Codes on Wages, Social Security, Occupational Safety, Health & Working Conditions, and Industrial Relations. They provide definitions for workers, wages, types of employment, gratuity, bonus, and social security entitlements, including for gig and platform workers. A key feature is the standardisation of working hours at 48 hours per week and specific measures for women working night shifts.
The consolidation of multiple prior Rules into these four Codes aims to streamline labour governance, reduce administrative complexity, and provide uniform protections across sectors. Failure to implement these systematically could perpetuate informal employment vulnerabilities, wage inequities, and unsafe working conditions.
Ensuring structured, clear, and comprehensive Rules enables uniform enforcement and reduces exploitation of informal and gig workers while enhancing compliance efficiency.
2. Code on Wages: Minimum Wage and Working Conditions
The draft Rules integrate 18 prior wage-related Rules, including the Payment of Wages (Procedure) Rules, 1937, and the Equal Remuneration Rules, 1976. The Rules define minimum wages based on a standard working class family (earning employee, spouse, and two children), incorporating caloric intake, clothing, housing, fuel, and contingencies. Wage floors will consider geographical area, experience, and skill level, categorised into unskilled, semi-skilled, skilled, and highly skilled workers.
- Impacts:
- Ensures wages meet basic living standards including food, clothing, housing, and healthcare.
- Introduces skill-based differentiation to account for occupational realities.
- Central Advisory Board to oversee floor wage formulation ensures systematic governance.
By aligning wages with consumption needs and skill levels, the Code strengthens income security and reduces poverty risks among workers. Neglecting this may lead to wage stagnation and regional inequities.
3. Code on Social Security: Coverage of Unorganised and Gig Workers
The Social Security Rules supersede 12 prior regulations, including Employees’ State Insurance (Central) Rules, 1950, and Payment of Gratuity (Central) Rules, 1972. A National Social Security Board will represent unorganised sector workers and employers. It includes five members from gig and platform workers on a rotational basis. The Rules mandate creches in establishments with 50+ employees for children under six.
- Impacts:
- Provides structured social security for informal, gig, and platform workers.
- Enhances inclusivity by recognising diverse employment arrangements.
- Strengthens gender-sensitive workplace infrastructure through mandated childcare facilities.
Institutionalising representation of unorganised and gig workers ensures social security measures are equitable and needs-driven. Ignoring this would perpetuate systemic exclusion.
4. Occupational Safety, Health & Working Conditions
The Rules under this Code replace 13 earlier safety and employment regulations, covering docks, mines, construction, migrant workers, and journalists. Key provisions include annual medical examinations for workers aged 40+, mandatory letters of appointment with Aadhaar and UAN, and enforcement of 48-hour workweek, with overtime at double wages. Night shift work for women requires written consent, transportation, and CCTV monitoring.
- Impacts:
- Institutionalises preventive health measures and formal documentation.
- Enhances workplace safety, particularly for vulnerable categories.
- Supports compliance monitoring and legal accountability.
Regulating health and safety safeguards productivity, reduces workplace accidents, and promotes gender-sensitive practices. Neglect can increase occupational hazards and gender-based vulnerabilities.
5. Industrial Relations Code: Employment Types and Trade Unions
The draft Rules consolidate the Industrial Disputes (Central) Rules, 1957, and Industrial Employment (Standing Orders) Central Rules, 1946. They define worker categories: Permanent, Temporary, Apprentices, Probationers, Badlis, Fixed Term Employment, and Casual. Fixed-term employment is based on a written contract for a fixed period. The Rules also standardise trade union registration, functioning, and allow verification through secret ballot.
- Impacts:
- Provides clarity on employment types and contractual obligations.
- Strengthens industrial dispute resolution and trade union transparency.
- Promotes worker rights through formal recognition and participatory verification.
Formalising employment types and union verification enhances industrial harmony and reduces litigation. Ignoring these provisions risks persistent labour unrest and informalisation.
6. Way Forward and Governance Implications
The draft Rules aim to operationalise four comprehensive Labour Codes with a focus on standardisation, inclusivity, and safety. They harmonise existing laws, extend social security to informal sectors, and strengthen enforcement mechanisms. For governance, this creates a framework for uniform compliance, gender sensitivity, worker welfare, and industrial stability. For development, the Rules promote decent work, equitable wages, and health security.
Effective implementation of these Rules will directly impact labour productivity, social equity, and economic resilience. Weak enforcement could perpetuate informalisation, wage inequities, and unsafe workplaces.
