Page 42 - NIS English 16-31 December, 2025

NATION | Labour Codes

The Industrial The Code

Code 2 Relations on Social
Code, 2020 Code 3 Security, 2020

The Industrial Relations Code (IR Code) The Code on Social Security incorporates nine
acknowledges the fact that the survival of the worker existing social security acts. This code provides
depends upon the survival of the industry. It promotes social security to all workers, covering life, health,
harmony and ease of doing business.
maternity, and provident fund benefits.

Reduced compliance burden: The
Key Issues number of rules has been reduced from 105 Key Issues has been set for initiating EPF inquiries and
Time-bound EPF inquiries: A five-year limit
to 51, the number of forms from 37 to 18,
recovery proceedings.
and the number of registers from 3 to zero.
Reduced EPF Appeal Deposit: Employers
Fixed-term employment: Full parity in appealing against EPFO orders will now have to
wages and benefits, time-limited contracts deposit only 25% of the assessed amount.
permitted. Gratuity eligibility after one year.
Reskilling Fund: A fund established Self-Assessment for Construction Cess:
Employers can now self-assess cess liabilities in
by contributing an amount equivalent to respect of building and other construction work.
15 days' wages to train each retrenched
Inclusion of Gig and Platform Workers: New
employee. definitions of social security coverage have been
Trade union recognition: A union with
included – 'aggregator', 'gig worker', and 'platform
51% membership will be recognized as a worker'.
negotiating union. Social Security Fund: A dedicated fund is
Expanded definition of worker: Includes
proposed to finance schemes covering life,
employees, journalists, and workers earning disability, health, and old-age benefits for
up to r18,000 per month. unorganized, gig, and platform workers.
Women's representation: Ensures
Expanded definition of dependents:
proportional representation of women in Extended to grandparents. Dependent parents-in-
grievance committees to resolve gender- law of female employees are also included.
sensitive issues.
Work from home provision: Permitted in Uniform definition of wages: 'Wages' now
includes basic pay, dearness allowance, and
service sectors with mutual consent. retaining allowance.
Tribunals: A two-member tribunal
Inclusion of travel accidents: Accidents
consisting of a judicial and administrative occurring while travelling between home and
member for dispute resolution. workplace are now considered employment-related.
Direct tribunal access: Parties can
Gratuity: The eligibility period has been reduced
approach the tribunals directly after from 5 years to 1 year.
conciliation fails within 90 days.

especially benefit from them. PM Modi believes that Many of India’s labour laws were framed in the
these reforms will create a strong ecosystem that pre-Independence and early post-Independence
will protect workers’ rights in the future and will era (1930s–1950s), at a time when the economy and
give new impetus to India’s economic growth. This world of work were fundamentally different. While
will not only create new job opportunities but also most major economies have updated and consoli-
increase productivity. It will also accelerate India’s dated their labour regulations in recent decades,
journey towards a Viksit Bharat. India continued to operate under fragmented,

40 NEW INDIA SAMACHAR || December 16-31, 2025