Dr Mansukh Mandaviya
For decades, India struggled with weak economic growth, entrenched corruption, and a chronic absence of commitment to job creation and workers’ welfare. Politically motivated gheraos and bandhs repeatedly disrupted industrial activity, stalling investments and eroding trust in the system. It is a shame that previous governments reduced labour welfare to mere slogans, failing to address the real issues faced by workers with seriousness.
It took a fundamental shift in national leadership to break this inertia. From the ramparts of the Red Fort, Prime Minister Narendra Modi invoked ‘Shramev Jayate’, declaring that the dignity of labour must stand at the centre of India’s development journey. This was not just a slogan, it marked the beginning of a new national consciousness that placed workers at the heart of policymaking.
The need for such a shift was long overdue. Much of India’s labour law architecture traces back to the 1920s–1950s and was shaped by a colonial mindset. Meanwhile, the world of work changed dramatically. The rise of gig and platform economies, digitalisation, flexible work structures, and new-age enterprises reshaped global labour systems. Yet India’s labour laws remained frozen in time, unable to support a modern workforce or a competitive economy.
Once again, it was Prime Minister Modi who, through his Panch Pran, called for shedding our colonial mindset and embracing a future-ready approach. The outdated laws persisted not because they worked, but because previous governments lacked the political will, courage, and vision to modernise them in line with emerging realities and national needs.
Under Prime Minister Modi’s leadership, India’s global stature has risen to unprecedented heights. The world acknowledges that India is no longer just participating in shaping the future, it is helping define it. But to truly seize this historic moment and convert potential into long-term prosperity, India cannot remain bound to a colonial-era labour framework built for control rather than empowerment.
A comprehensive overhaul was therefore essential to achieve large-scale job creation, broaden formalisation, and ensure universal social security. Recognising this national need, the Modi Government undertook one of the most significant reforms in independent India. The earlier 29 fragmented labour laws were consolidated into four clear, coherent Labour Codes: the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code.
On 21st November 2025, these Labour Codes came into force. Together, they establish a modern labour framework that is both pro-worker and pro-growth, demonstrating that India is ready to meet the demands of a dynamic and rapidly evolving global economy.
Since the Codes were passed by Parliament in 2019 and 2020, several States, Union Territories, workers’ associations, and industry bodies have welcomed their progressive intent. Recognising their merit, States across the political spectrum proactively amended their labour laws in alignment with the Codes. For instance, States that have allowed women to work at night with their consent and adequate safety measures, saw 13% rise in the total number of women employed.
Stakeholders across sectors have recognised the need to move beyond an outdated labour system. Their contributions have helped shape a balanced framework that protects workers while enabling economy to grow.
In my interactions with workers and industry leaders, one message has emerged consistently, the need for clarity, fairness, and dignity at the workplace. This guiding principle shaped our reforms, replacing a complex, fragmented system with one that is simple, transparent, and protective of every worker.
The Labour Codes, in letter and spirit, prioritise workers’ interests while balancing employers’ expectations. They promote preventive healthcare and expand social security. They provide formal recognition to audio-visual workers and gig and platform workers. They enable pan-India ESIC coverage, mandate annual health check-ups for all workers aged 40 and above, including plantation workers who were earlier excluded, and guarantee statutory floor wages for all workers to reduce disparities across States. Provisions such as mandatory appointment letters, assured pay slips, and paid annual leave provide greater stability, dignity, and protection for every worker.
As a progressive alternative to contract-based employment, the Codes introduce Fixed Term Employment (FTE). Under FTE, workers employed for a fixed duration receive the same wages, benefits, and working conditions as permanent employees, including paid leave, regulated work hours, medical facilities, social security, and other statutory protections. Notably, FTE employees become eligible for gratuity after just one year of continuous service.
The Codes also acknowledge the realities of modern workplaces. If an employee voluntarily chooses to work beyond standard hours, they must be compensated at twice the normal wage rate for overtime, ensuring fairness in every circumstance.
Nari Shakti forms a central pillar of these reforms. Guided by Prime Minister Modi’s vision of women-led development, the Codes open new avenues for women to participate across sectors, including underground mines, heavy machinery, and night shifts, with consent and robust safety protocols.
At the same time, the Codes significantly reduce compliance burdens on employers by introducing single registration, a single licence, and single return filing. This simplification will encourage industries to expand and set up their units across India, thereby boosting local employment.
India’s progress in expanding social security, from 19% in 2015 to 64.3% in 2025, has earned global acclaim. The International Labour Organization has acknowledged India’s efforts, while the International Social Security Association has honoured India with its Award for Outstanding Achievement in Social Security. These International organisations have also hailed the new Labour Codes as modern, progressive, and pro-worker.
Despite these far-reaching benefits, it is evident that much of the criticism, arises not from an understanding of the reforms but from entrenched political interests resistant to change. Those who relied on outdated and opaque systems for influence are now uncomfortable with a transparent, efficient, and worker-centric framework. Instead of acknowledging the positive transformation these Codes bring, they have chosen to spread misinformation.
The Labour Codes represent a transformative milestone in India’s journey towards becoming an Atmanirbhar and Viksit Bharat. They uphold the dignity of the worker, encourage industrial growth, and create a model where workers’ rights and dignity are protected, and workers become the engine driving Atmanirbharta.
Guided by the vision of Prime Minister Shri Narendra Modi and the commitment to Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas, these labour reforms lay a strong foundation for a modern, resilient and inclusive economy that places both workers and enterprises at the heart of India’s development.
Shramev Jayate!
(The author is Union Minister of Labour& Employment and Youth Affairs & Sports)
