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Labour Codes in India

Indian Economy

  • PYQs6
  • Articles1
I

Background

Labour reforms are a significant policy area impacting economic growth, social justice, and industrial relations. UPSC often asks about the objectives, provisions, impact, and criticisms of such reforms on various stakeholders.

India has enacted four new labour codes (The Code on Wages, 2019; The Industrial Relations Code, 2020; The Code on Social Security, 2020; and The Occupational Safety, Health and Working Conditions Code, 2020) to consolidate and simplify existing labour laws, aiming to improve ease of doing business and ensure worker welfare.

II

Facts & tables

Objective
Consolidate 29 central labour laws into 4 codes to rationalize labour laws, promote ease of doing business, and ensure worker welfare.
Implementation Status
Rules for all four codes have been notified, completing the implementation framework.
Key Criticisms
Trade unions and academics argue provisions are regressive, detrimental to worker interests, and may lead to informalisation.
Specific Concerns
Issues with Fixed-Term Employment, minimum wage definition, gig worker social security, and trade union recognition thresholds.
Four Labour Codes
Code Name Year
The Code on Wages 2019
The Industrial Relations Code 2020
The Code on Social Security 2020
The Occupational Safety, Health and Working Conditions Code 2020
Static syllabus anchors
Type Reference
Conceptual area Industrial Relations
Conceptual area Labour Law Reform
Conceptual area Social Security
Institutions & roles
Body Role
Ministry of Labour and Employment Formulates and implements labour policies and codes
III

Prelims angle

Prelims angle: Multi-statement analysis

Prelims angle: Factual recall

  • Four codes: Wages, IR, Social Security, OSHWC.
  • Aim: Consolidate laws, ease of doing business, worker welfare.
  • Criticisms: Worker vulnerability, informalisation, diluted union power.
  • Key issues: FTE, minimum wage, gig workers, union recognition.
  • Rules implementation completed, but concerns persist.
High-confidence PYQ links
Year Framing tags
2026 Factual recall, Multi-statement analysis
2024 Multi-statement analysis, Factual recall
2021 Multi-statement analysis, Factual recall
2020 Multi-statement analysis, Conceptual understanding
2019 Statement-based questions, Conceptual understanding
2018 Factual recall, Conceptual understanding

Timeline

  1. Industrial Relations

    Conceptual area

  2. Labour Law Reform

    Conceptual area

  3. Social Security

    Conceptual area

  4. Prelims 2018

    Factual recall, Conceptual understanding

  5. Prelims 2019

    Statement-based questions, Conceptual understanding

  6. Prelims 2020

    Multi-statement analysis, Conceptual understanding

  7. Prelims 2021

    Multi-statement analysis, Factual recall

  8. Prelims 2024

    Multi-statement analysis, Factual recall

  9. Prelims 2026

    Factual recall, Multi-statement analysis

  10. Implementation complete, but workers still vulnerable

    The four new Labour Codes aim to modernize India's labour laws by consolidating existing legislation. While intended to improve ease of doing business and worker welfare, their implementation rules have drawn significant criticism for potentially weakening worker protections, promoting informalisation, and diluting trade union rights.

See also

Past papers

In the news

thehindu.com

Implementation complete, but workers still vulnerable

The four new Labour Codes aim to modernize India's labour laws by consolidating existing legislation. While intended to improve ease of doing business and worker welfare, their implementation rules have drawn significant criticism for potentially weakening worker protections, promoting informalisation, and diluting trade union rights.

Try these PYQs

UPSC Prelims 2021 medium Social Issues & Schemes Open full page

With reference to the casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

UPSC Prelims 2026 hard International Relations Open full page

Which of the following international conventions have **not** been ratified by India?

1. Employment Policy Convention
2. Abolition of Forced Labour Convention
3. International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families
4. Geneva Convention Relative to the Protection of Civilian Persons in Time of War
5. Convention on Reduction of Statelessness

Select the answer using the code given below:

UPSC Prelims 2024 medium Social Issues & Schemes Open full page

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:

1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.

Which of the statements given above is/are correct?

UPSC Prelims 2019 medium Economy Open full page

Consider the following statements :
As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
1. if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
2. no notice of termination of employment shall be necessary in the case of temporary workman

Which of the statements given above is/are correct?

UPSC Prelims 2020 hard Economy Open full page

With reference of the Indian economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity (per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.

Which of the statements given above is/are correct?

Show 1 more PYQs
UPSC Prelims 2018 easy Social Issues & Schemes Open full page

International Labour Organization's Conventions 138 and 182 are related to -