Labor-Market Reforms in India

Abstract

This paper provides an insight into ongoing labour market reforms in India. In order to safeguard life and dignity of the workers and to align labour market policies with the requirement of changing labour market, the Government of India has laid down four Codes on labour viz; Codes on Wages; Industrial Relations; Social Security & Welfare; and Occupational Safety, Health and Working Conditions respectively, by rationalizing, amalgamating and simplifying the relevant provisions of the existing 44 central labour laws. The restructuring of the existing 44 Central Labour Acts into four major Codes is expected to reduce the complexity in its compliance, promote employment generation by enabling business environment and facilitate ease of doing business. At the same time, these initiatives are also expected to improve life and the dignity of workers by safeguarding their interest, providing social security benefits against risk, ensuring better work & working conditions, suitable and timely payment of wages and hygienic working environment. The paper also highlights challenges in implementation of some provisions of the Code and suggests modifications so that the benefits of labour market reforms can reach to both workers and employers.