Labour laws in India
Under the Indian Constitution, labour regulation falls under the Concurrent List of the Indian Constitution, allowing both the central government and individual states to enact laws pertaining to labour.
| Enacted and enforced by federal government | Enacted by federal government, enforced by federal and state governments | Enacted by federal government, enforced by state government |
|---|---|---|
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Note: The list is not an exhaustive account of India's labour laws; it excludes worker and sector-specific regulation.
Status of newly enacted labour codes in India
The federal government has undertaken substantial revisions, consolidating numerous existing laws into four major labour codes. However, these codes have not been implemented yet. These new labour codes include:
- Code on Wages, 2019: The Code on Wages aimed to simplify the definition of wages and ensure timely payment of wages to workers. It proposed to streamline the wage structure and simplify calculations related to allowances and deductions.
- Code on Social Security, 2020: The Social Security Code aimed to provide a comprehensive framework for social security benefits to workers, including provident funds, gratuity, maternity benefits, and pensions. It aimed to extend these benefits to a broader range of workers, including gig economy workers and informal sector employees.
- Occupational Safety, Health and Working Conditions Code Bill, 2020: The Code on Occupational Safety, Health, and Working Conditions proposed to consolidate and update regulations related to workplace safety, health, and working conditions. It aimed to enhance safety standards and improve the overall well-being of workers.
- Industrial Relations Code Bill, 2020: The proposed Industrial Relations Code aimed to consolidate laws related to trade unions, industrial disputes, and resolution mechanisms. It aimed to simplify the process of forming and registering trade unions and introduced changes to the process of collective bargaining.
These codes are aimed at simplifying labour regulations, improving ease of doing business, and enhancing social security provisions.
| New labour code | Subsumed laws |
|---|---|
| Code on Wages, 2019 |
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| Code on Social Security, 2020 |
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| Occupational Safety, Health and Working Conditions Code Bill, 2020 |
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| Industrial Relations Code Bill, 2020 |
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Since the implementing rules for these Labour Codes are yet to be notified, as of August 21, 2023, human resource (HR) policies in India continue to be governed by the existing laws.
Disclaimer
The Canadian Trade Commissioner Service in India recommends that readers seek professional advice regarding their particular circumstances. This publication should not be relied on as a substitute for such professional advice. The Government of Canada does not guarantee the accuracy of any of the information contained on this page. Readers should independently verify the accuracy and reliability of the information.
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