Alerts & Updates 25th Mar 2022

India’s new labour codes

Authors

PV Ramana Murthy Head– Employment and Labor Laws | Mumbai

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One of the last bastions to fall in the regulatory reform landscapes in India is the labour legislations. Some of them date back to 1926, and the law has certainly not kept up with the realities faced by Indian enterprise today.

Through 4 acts (hereinafter referred to as the ‘Labour Codes’), notified on August 2019 and September 2020, the Government of India has set the stage for a landmark reform in the Indian labour law landscape. 29 separate labour laws will make way for 4 new acts comprising a modern labour code which is designed to improve the working conditions and wages of labour and enhance the ease of doing business in the country.

As is the case in all such structural reforms, enterprises need to be informed, prepared and comply with the new Labour Codes (the implementation date of all four new codes is yet to be notified).

In this note, we set out an overview of the code and what it means for businesses.

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