India’s federal government is implementing four new labour codes to update rules that have been in place for decades. These codes cover wages, industrial relations, social security, and occupational safety, and will be applied uniformly across the country.
Companies with fewer than 300 employees can now lay off staff without needing government approval, raising the previous limit from 100 employees. All workers must receive formal, written employment letters, and gig workers will now also have access to social security benefits. A minimum wage will be established to reduce regional disparities, and workers will receive free annual health check-ups.
Businesses can extend working hours to 8-12 hours per day, with a maximum of 48 hours per week. Overtime must be compensated at double the regular rate. Employers must ensure equal pay for women and allow them to work night shifts with safety measures. Maternity benefits have also been extended to women in unorganised sectors. Additionally, gig work is officially defined, granting social security to more workers.
With information from Reuters