What is the Status of India’s Four New Labor Codes?

Posted by Written by Naina Bhardwaj Reading Time: 6 minutes

We track the status of India’s four new labor codes as respective state governments are expected to release draft rules for implementation. We also provide a list of the draft rules released by the central government on each of the codes. The four labor codes are the Code on Wages, 2019; Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020. The central government has claimed that these enactments will facilitate better labor compliance, introduce accountability, and will be beneficial to both employers and workers. 


India boasts of a labor force of around 500 million workers in the organized and unorganized sector. Such a vast labor force provides ample opportunity to convert it into efficient human capital and reap the benefits of the much talked about demographic dividend.

However, the biggest hurdle has remained an overwhelmingly bulky labyrinth of overlapping labor laws and regulations, which ironically fail to include all sections of India’s labor force.

Since 2019, the federal government has sought to implement major reforms through four new labor codes – the Code on Wages, 2019, Industrial Relations Code Bill, 2020; Code on Social Security Bill, 2020; and the Occupational Safety, Health and Working Conditions Code Bill, 2020.

Their implementation has been deferred since all state governments are not onboard with the provisions contained in the new labor codes. While the federal government had released the draft rules for all four labor codes as early as February 2021, some state governments are yet to release the draft rules for implementation in their respective states.

Labor is a concurrent subject in the Indian constitution, implying that both the federal government as well as the states can legislate on the subject. The four new labor codes will be implemented in India once all the states have published their draft rules.

Which labor laws have been subsumed in the four new codes?

Acts Subsumed by the Four Labor Codes

Labor Codes

Acts being subsumed

Code on Wages, 2019

  • The Payment of Wages Act, 1936;
  • The Minimum Wages Act, 1948; 
  • The Payment of Bonus Act, 1965; and 
  • The Equal Remuneration Act, 1976

Occupational Safety, Health and Working Conditions Code, 2020

  • The Factories Act, 1948
  • The Contract Labor (Regulation and Abolition) Act, 1970
  • The Mines Act, 1952
  • The Dock Workers (Safety, Health and Welfare) Act, 1986
  • The Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
  • The Plantations Labor Act, 1951
  • The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • The Working Journalist and other News Paper Employees (Conditions of Service and Miscellaneous Provision) Act, 1955
  • The Working Journalist (Fixation of rates of wages) Act, 1958
  • The Cine Workers and Cinema Theatre Workers Act, 1981
  • The Motor Transport Workers Act, 1961
  • The Sales Promotion Employees (Conditions of Service) Act, 1976
  • The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

Industrial Relations Code, 2020

  • The Trade Unions Act, 1926; 
  • The Industrial Employment (Standing Orders) Act, 1946, and 
  • The Industrial Disputes Act, 1947

Code on Social Security, 2020

  • The Employee’s Compensation Act, 1923
  • The Employees’ State Insurance Act, 1948
  • The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
  • The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
  • The Maternity Benefit Act, 1961
  • The Payment of Gratuity Act, 1972
  • The Cine-Workers Welfare Fund Act, 1981
  • The Building and Other Construction Workers’ Welfare Cess Act, 1996
  • The Unorganized Workers’ Social Security Act, 2008

What is the implementation status of the four labor codes in India?

It is speculated that the four labor codes are likely to be implemented in the next financial year, that is FY 2022-23, once all the states have finalized the draft rules.

As on January 2022, 26 States/Union Territories (UTs) have pre-published the draft rules under the Code on Wages, 22 States/UTs under Industrial Relations Code, 20 States/UTs under Code on Social Security, and 17 States/UTs under the Occupational Safety, Health and Working Conditions Code.

Here’s a list of different states which have pre-published the draft rules for the four codes:

  • The Code on Wages, 2019: Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Tripura, Uttarakhand, Uttar Pradesh, Odisha, Manipur, Telangana, Chhattisgarh, Jharkhand, Kerala, Maharashtra, Mizoram, Punjab, Rajasthan, UTs of Jammu & Kashmir, Puducherry, Chandigarh and Delhi.
  • The Industrial Relations Code, 2020: Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Tripura, Uttarakhand, Uttar Pradesh, Odisha, Manipur, Telangana, Chhattisgarh, Jharkhand, Maharashtra, Punjab, UTs of Jammu & Kashmir, Chandigarh and Puducherry.
  • Code on Social Security, 2020: Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Tripura, Uttarakhand, Uttar Pradesh, Odisha, Manipur, Chhattisgarh, Jharkhand, Maharashtra, Kerala, Punjab, UTs of Jammu & Kashmir and Chandigarh.
  • Occupational Safety, Health and Working Conditions Code, 2020: Arunachal Pradesh, Bihar, Goa, Haryana, Himachal Pradesh Madhya Pradesh,  Uttarakhand, Uttar Pradesh, Odisha, Manipur, Chhattisgarh, Jharkhand, Kerala, Punjab, Gujarat, UTs of Jammu & Kashmir, Chandigarh.

State-Wise Status of New Labor Codes (Draft Rules)

State / Union Territory

Code on Wages, 2019

Industrial Relation Code, 2020

Occupational Safety, Health and Working Conditions Code, 2020

Code on Social Security, 2020

Andhra Pradesh

Awaited

Awaited

Awaited

Awaited

Arunachal Pradesh

Released the draft

Released the draft

Released the draft

Released the draft

Assam

Released a draft on October 20, 2021

Released a draft on November 17, 2021

Awaited

Released a draft on October 20, 2021

Andaman and Nicobar

Awaited

Awaited

Awaited

Awaited

Bihar

Released a draft on February 8, 2021

Released a draft on February 22, 2021

Released a draft on November 8, 2021

Released a draft on February 26, 2021

Chhattisgarh

Released a draft on May 25, 2021

Released a draft on May 25, 2021

Released a draft on May 25, 2021

Released a draft on May 27, 2021

Chandigarh

Released a draft on December28, 2021

Released a draft on December 28, 2021

Released the draft

Released a draft on December 28, 2021

Delhi

Released a draft on November 26, 2021

Awaited

Awaited

Awaited

Dadar and Nagar Haveli & Daman and Diu

Awaited

Awaited

Awaited

Awaited

Gujarat

Released a draft on October 5, 2021

Released a draft on October 5, 2021

Released a draft on December 30, 2021

Released a draft on November 16, 2021

Goa

Released a draft on September 23, 2021

Released a draft on October 21, 2021

Released the draft

Released a draft on November 25, 2021

Haryana

Released a draft on September 16, 2021

Released a draft on September 16, 2021

Released a draft on September 16, 2021

Released a draft on September 16, 2021

Himachal Pradesh

Released a draft on August 7, 2021

Released a draft on September 29, 2021

Released the draft

Released a draft on October 30, 2021

Jharkhand

Released a draft on July 14, 2021

Released a draft on July 14, 2021

Released a draft on August 27, 2021

Released a draft on August 3, 2021

Jammu & Kashmir

Released a draft on January 15, 2021

Released a draft on January 15, 2021

Released a draft on February 9, 2021

Released a draft on January 15, 2021

Karnataka

Released a draft on March 2, 2021

Released a draft on May 3, 2021

Awaited

Awaited

Kerala

Released a draft on December 14, 2021

Awaited

Released a draft on December 15, 2021

Released the draft

Ladakh

Awaited

Awaited

Awaited

Awaited

Lakshadweep

Awaited

Awaited

Awaited

Awaited

Madhya Pradesh

Released a draft on December 23, 2021

Released a draft on February 9, 2021

Released a draft on February 9, 2021

Released a draft on February 26, 2021

Maharashtra

Released a draft on September 3, 2021

Released a draft on December 3, 2021

Awaited

Released a draft on August 27, 2021

Manipur

Released a draft on November 19, 2021

Released a draft on November 19, 2021

Released a draft on November 19, 2021

Released a draft on November 19, 2021

Meghalaya

Awaited

Awaited

Awaited

Awaited

Mizoram

Released a draft on November 10, 2021

Awaited

Awaited

Awaited

Nagaland

Awaited

Awaited

Awaited

Awaited

Odisha

Released a draft on March 10, 2021

Released a draft on May 18, 2021

Released a draft on July 1, 2021

Released a draft on June 8, 2021

Puducherry

Released a draft on November 9, 2021

Released a draft on November 3, 2021

Awaited

Awaited

Punjab

Released a draft on March 24, 2021

Released a draft on May 5, 2021

Released a draft on May 17, 2021

Released a draft on March 25, 2021

Rajasthan

Released a draft on July 14, 2021

Awaited

Awaited

Awaited

Sikkim

Awaited

Awaited

Awaited

Awaited

Tripura

Released a draft on June 1, 2021

Released a draft on June 19, 2021

Awaited

Released a draft on September 28, 2021

Tamil Nadu

Awaited

Awaited

Awaited

Awaited

Telangana

Released a draft on September 29, 2021

Released a draft on September 29, 2021

Awaited

Awaited

Uttar Pradesh

Released a draft on February 25, 2021

Released a draft on February 18, 2021

Released a draft on March 23, 2021

Released a draft on March 3, 2021

Uttarakhand

Released a draft on February 25, 2021

Released a draft on February 25, 2021

Released a draft on March 2, 2021

Released a draft on February 26, 2021

West Bengal

Awaited

Awaited

Awaited

Awaited

What are the draft rules released by the central government on the four labor codes?

Central Labor Codes (Draft Rules)

Code on Wages, 2019

  1. Codes on Wages (Central) Rules
  2. Code on Wages (Central Advisory Board) Rules

Industrial Relation Code, 2020

  1. Industrial Relation (Central) Rules
  2. Recognition of Negotiating Union or Negotiating Council and Adjudication of Disputes of Trade Unions (Central) Rules
  3. Draft Model Standing Order for Service Sector
  4. Draft Model Standing Order for Manufacturing Sector & Mining Sector

Occupational Safety, Health and Working Conditions Code, 2020

  1. The Occupational Safety, Health and Working Conditions (Central) Rules
  2. Rules for Constitution of Technical Committees under Occupational Safety, Health and Working Conditions Code

Code on Social Security, 2020

  1. The Code on Social Security (Central) Rules
  2. The Code on Social Security (Employee’s Compensation) (Central) Rules

About Us

India Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Readers may write to india@dezshira.com for more support on doing business in in India.

We also maintain offices or have alliance partners assisting foreign investors in Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Italy, Germany, and the United States, in addition to practices in Bangladesh and Russia.

Leave a Reply

Your email address will not be published.