Centre Notifies Final Rules for Four Labour Codes – New Floor Wage, Gig‑Worker Social Security & Revised Retrenchment Norms

<h2>Centre Notifies Final Rules for Four Labour Codes</h2> <p>The Union Government, through Gazette notifications on <strong>8‑9 May 2026</strong>, released the <span class="key-term" data-definition="Four Labour Codes – Consolidated statutes that replace 29 central labour laws, covering wages, social security, industrial relations and occupational safety (GS3: Economy)">Four Labour Codes</span>. These codes aim to simplify compliance, ensure uniform wage standards and extend social security to informal workers.</p> <h3>Key Developments</h3> <ul> <li><strong>Code on Wages</strong>: The earlier criteria for calculating minimum wage have been dropped. A <span class="key-term" data-definition="Floor wage – A baseline wage fixed by the central government below which states cannot set lower minimum wages, ensuring a minimum standard of living (GS3: Economy)">floor wage</span> will be fixed considering living standards, clothing, housing and other factors.</li> <li><strong>Code on Social Security</strong>: Mandatory Aadhaar‑linked registration for every unorganised worker aged 16+. <span class="key-term" data-definition="Gig workers – Self‑employed individuals who earn through platform‑mediated work outside traditional employer‑employee relationships (GS3: Economy)">Gig workers</span> are now covered, and aggregators must register them in real‑time on a central portal.</li> <li><strong>Industrial Relations Code</strong>: Establishments with ≥20 workers must form a <span class="key-term" data-definition="Grievance Redressal Committee – A body with equal employer‑worker representation to address workplace grievances, with a maximum of 10 members and proportional women representation (GS3: Economy)">Grievance Redressal Committee</span>. Companies with up to 300 employees no longer need government permission for retrenchment, and strike notice periods are tightened to 60 days (or 14 days after notice).</li> <li><strong>Occupational Safety, Health and Working Conditions (OSH) Code</strong>: Women can work night shifts only with written consent; employers must provide transport, safe lighting and free annual health check‑ups for workers aged ≥40.</li> <li>Single‑window compliance: One pan‑India registration, licence and return for all labour regulations.</li> </ul> <h3>Important Facts</h3> <ul> <li>Working hours: Daily wage workers – 8 hours per day; other workers – not to exceed 48 hours per week.</li> <li>Social security for gig and platform workers will be overseen by a <span class="key-term" data-definition="National Social Security Board – A statutory body comprising representatives from Parliament, workers, employers and minorities to oversee social security schemes for unorganised and gig workers (GS3: Economy)">National Social Security Board</span>.</li> <li>Safety committees are mandatory in factories employing ≥500 workers.</li> <li>Employers must electronically submit data on inter‑state migrant workers and occupational health details.</li> </ul> <h3>UPSC Relevance</h3> <p>Understanding these reforms is crucial for GS III (Economy &amp; Social Justice) and GS II (Polity) questions on labour legislation, social security, and federal‑state coordination (labour is a Concurrent List subject). The shift from multiple statutes to four codes illustrates the government's approach to regulatory simplification and inclusive growth, topics frequently asked in essay and answer‑writing papers.</p> <h3>Way Forward</h3> <p>States will need to align their own rules with the central codes, especially regarding the <span class="key-term" data-definition="Floor wage – A centrally fixed minimum wage that states cannot undercut, ensuring a uniform baseline across the country (GS3: Economy)">floor wage</span>. Implementation challenges include real‑time registration of gig workers, enforcement of gender‑sensitive night‑shift provisions, and capacity building for grievance committees. Aspirants should monitor subsequent state notifications and judicial interpretations, as they will shape the practical impact of these reforms.</p>