By Moa Jamir
The recent notification of the four 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 (OSH) Code, 2020, marks a significant shift in India’s regulatory landscape. Effective from November 21, these Codes rationalise 29 existing labour laws and have been termed a "landmark move" by the Union Ministry of Labour & Employment, aiming to modernise fragmented regulations and align the workforce with the changing world of work. The stated goal is to lay the foundation for a future-ready, competitive, and self-reliant nation.
Opposition parties and several trade unions have criticised the notification of the four Labour Codes, expressing concern over their potential impact on job security and collective bargaining. However, irrespective of differing positions on the Codes, some of the reforms they introduce are worth serious consideration in Nagaland, a State where labour relations and regulations remain largely confined to the government sector, and the private employment landscape continues to operate with minimal oversight.
A number of reforms introduced are indeed progressive. Under the Code on Social Security, 2020, mandatory appointment letters for all workers promote formalisation, a crucial step in ensuring transparency, job security and proof of employment. Social security coverage has been expanded to include gig and platform workers, widening access to Provident Fund, ESIC, insurance and retirement benefits. The earlier industry-specific Employee Provident Fund (EPF) applicability has been removed; now every establishment with 20 or more employees is covered, reducing ambiguity.
The Code on Wages, 2019 guarantees a statutory minimum wage for every worker in both the organised and unorganised sectors. It also mandates timely payment of wages: at the end of the shift for daily earners, before the weekly holiday for weekly workers, within two days after the end of the fortnight, and within seven days of the following month for monthly employees.
For states like Nagaland where delayed disbursal of wages remains a recurring issue even in the government sector, such clear timelines can provide workers with financial security and predictability. Overtime is now to be paid at least twice the normal wage, reinforcing protection against excessive exploitation.
Under the OSH Code, employers must provide free annual health check-ups for workers above 40 years while Employees' State Insurance Corporation (ESIC) benefits are extended pan-India. The Industrial Relations Code strengthens terms for fixed-term employees, ensuring wage parity with permanent staff and enabling gratuity eligibility after one year instead of five. Workers in media, sales promotion and supervisory roles earning up to Rs 18,000 per month are recognised, thereby expanding protection. The Code maintains an 8-hour workday and 48-hour week, with consent-based overtime only. Digital-era employment has also found recognition. “Gig worker,” “platform worker,” and “aggregator” definitions ensure new-age employees receive social security, with aggregators contributing a share of their turnover toward worker protection funds.
However, trade unions and opposition parties have sharply opposed provisions such as the increase in the lay-off/closure approval threshold from 100 to 300 workers, arguing that it weakens job security and collective bargaining rights. The manner of implementation, criticised as unilateral and without adequate consultation, has also raised democratic concerns. These are genuine concerns that demand careful monitoring and future course correction.
Nevertheless, in a state where labour regulation remains largely confined to the government sector and private establishments operate informally, the Labour Codes could offer an overdue opportunity and push Nagaland toward a more formal, accountable and humane employment environment. The State must now proactively frame its rules ensuring that flexibility for businesses does not come at the cost of workers’ rights. Strong enforcement, monitoring and continuous stakeholder consultation will be key to translating reform into real-world change.
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