India’s New Labour Codes have triggered nationwide protests as trade unions accuse the Modi government of weakening worker rights through pro-employer reforms. While the Centre argues the codes expand social security, unions warn of job insecurity, easier layoffs and restrictions on strikes. Here’s what the new regime changes for India’s workforce.
TheInterviewTimes.com | November 26, 2025: India’s largest trade unions launched sweeping nationwide protests on Wednesday against the New Labour Codes, accusing the Modi government of pushing through reforms that they claim dilute worker protections, expand employer flexibility and reshape India’s labour market in favour of corporations. The Centre maintains that the four-code overhaul modernises labour governance and expands social security to millions.
New Labour Codes Take Effect Across India
The four new laws—on wages, industrial relations, social security and occupational safety—came into force on 21 November 2025, replacing 29 central labour laws that had accumulated since colonial rule.
The Labour Ministry has called the rollout “transformational”, projecting that the unified framework will create easier registration, single-window licences, streamlined compliance and a more investment-friendly ecosystem for businesses.
Under the Wage Code, every employee—across organised and unorganised sectors—is now entitled to a statutory minimum wage linked to a national floor. State governments will continue to set local minimum wages based on skill levels and economic conditions.
Government highlights key benefits of the New Labour Codes:
- Portable social security for migrant workers
- Expanded Employees’ State Insurance (ESI) coverage
- Mandatory written appointment letters for all employees
- Overtime pay at twice the normal wage
- Reduced gratuity eligibility to one year for fixed-term workers
Officials claim the new structure will formalise employment faster and reduce administrative burdens for enterprises of all sizes.
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Unions Mobilise Nationwide Against ‘Pro-Employer’ Reforms
Despite these assurances, thousands of workers and farmer groups rallied across cities including Delhi, Mumbai, Kolkata, Chennai and Bengaluru, along with mining belts and manufacturing hubs. The demonstrations were led by the Joint Platform of Central Trade Unions, which includes CITU, INTUC, AITUC, HMS, SEWA, AICCTU and others.
Union leaders have demanded complete withdrawal of the laws and fresh consultations. They argue the reforms are being implemented without adequate debate, and fear they will normalise precarious employment across factories, plantations, logistics networks and service sectors.
Wednesday’s mobilisation follows a year of escalating protests, including a nationwide general strike earlier in 2025 where millions participated.
Government Lists Gains: Gig Workers, Women’s Safety, Health Checks
The Centre insists the New Labour Codes strengthen worker welfare. Key measures include:
- Formal recognition of gig and platform workers under the Social Security Code
- A dedicated welfare fund financed by aggregator platforms
- Annual health check-ups for workers above 40
- Allowing women to work night shifts with mandatory safety measures
- Expanded coverage of hazardous industries
- Digital filing and simplified registrations for small enterprises
Officials say the reforms will help India compete globally by making labour markets more predictable, transparent and efficient.
Unions Warn of Job Insecurity, Restrictive Strike Rules
The sharpest resistance centres on the Industrial Relations Code, which unions argue shifts power heavily towards employers.
Major flashpoints include:
- Increasing the threshold for government approval of layoffs, retrenchment and closures from 100 to 300 workers
- Expanded use of fixed-term contracts, enabling quicker exits
- Longer strike notice periods and stricter rules for union formation
- A wider list of “public utility” services where strikes are heavily restricted
Labour platforms say these provisions amount to “legalising hire-and-fire”, reducing job stability and weakening collective bargaining.
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Big Political Stakes Ahead
The protests come at a sensitive moment for the Modi government, which has positioned labour reform as central to boosting manufacturing, jobs and the Aatmanirbhar Bharat push.
Industry groups have broadly welcomed the simplification but warn that implementation challenges, compliance costs and state-level variations could become major hurdles. Analysts expect the real impact will depend on state rule-making, enforcement capacity and employer practices in the coming months.
With unions planning larger mobilisations ahead of key state elections, the confrontation over the New Labour Codes is poised to become a defining policy battle in India’s economic reform journey.
New Labour Codes: Key Takeaways
- India’s New Labour Codes triggered massive nationwide protests led by central trade unions.
- Government says the codes expand social security and modernise compliance.
- Unions warn of easier layoffs, weaker strike rights and rising job insecurity.
- Provisions for gig workers, women’s safety and health checks are major government highlights.
- The labour reform battle is set to intensify ahead of state elections.