India's new labor laws aim to improve working conditions, simplify processes, and enhance ease of doing business. The laws consolidate 44 existing labor laws into four codes¹:
- *The Code on Wages, 2019*: Establishes a central "floor wage" and ensures equal remuneration without gender discrimination. It also mandates wage settlement for exit employees within two working days.
- *The Industrial Relations Code, 2020*: Focuses on improving industrial relations, simplifying processes, and enhancing ease of doing business.
- *The Social Security Code, 2020*: Provides social security benefits to workers, including provident fund, employee state insurance, and gratuity.
- *The Occupational Safety, Health and Working Conditions Code, 2020*: Regulates occupational safety, health, and working conditions for workers.
Key highlights of the new labor laws include²:
- *Increased basic pay*: The new wage definition includes three components – basic pay, dearness, and retaining allowance.
- *Improved social security*: The laws provide for social security benefits, including provident fund, employee state insurance, and gratuity.
- *Enhanced worker protection*: The laws regulate occupational safety, health, and working conditions for workers.
The new labor laws are expected to benefit both employees and employers by providing a more streamlined and efficient system. However, some uncertainty prevails regarding their interpretation and implementation.
