The Bharat Bandh on July 9, 2025, a nationwide strike called by a coalition of trade unions and their affiliate organizations, left many questioning the underlying reasons of such a significant disruption. The core of the protest lay in the contentious nature of India's ambitious labour law reforms – the consolidation of 29 central labour laws into four comprehensive codes. Enacted between 2019 and 2020, these codes aim to simplify regulations, spur economic growth, and simultaneously bolster worker protections. As of July 2025, these codes are on a phased implementation path, yet their full rollout and ultimate impact remain subjects of intense debate and ongoing adjustments.

Let's analyse these four codes, examining their core provisions, anticipated benefits, and the concerns vigorously raised by various stakeholders, particularly in light of the recent protests.

1. The Code on Wages, 2019: Towards Universal Minimum Wages and Transparency

Overview: This code unifies laws concerning wages and bonuses, striving for timely and non-discriminatory wage payments across all sectors.

Key Features:

• Universal Minimum Wage: Extends minimum wage protection to all workers, including those in the previously uncovered unorganized sector (e.g., domestic and gig workers), potentially benefiting nearly 50 crore individuals.

• National Floor Wage: Introduces a national floor wage to reduce regional wage disparities.

• Timely Payments: Mandates wage payments within specific periods, aiming for prompt disbursal.

• Gender Equality: Reinforces equal remuneration for similar work, regardless of gender.

Pros:

• Expanded Coverage: A monumental step towards formalizing and protecting India's vast unorganized workforce (approximately 90% of the total workforce).

• Simplified Compliance: Reduces the burden on employers, particularly MSMEs, by consolidating multiple wage laws.

• Fairness & Transparency: Promotes gender pay equity and encourages digital wage payments, enhancing transparency.

Cons:

• Implementation Complexities: A uniform national floor wage might not adequately account for diverse regional cost-of-living differences, potentially impacting small businesses.

• Ambiguous Definitions: Broad definitions of "wages" and "worker" could lead to interpretation challenges and disputes, as highlighted by concerns over the inclusion of various remuneration components for PF and gratuity calculations.

• Enforcement Concerns: Critics worry that a greater reliance on self-certification might weaken inspection mechanisms, diluting worker protections.

2. The Industrial Relations Code, 2020: Redefining Industrial Harmony

Overview: This code merges laws governing trade unions, industrial disputes, and employment conditions, aiming to foster industrial peace and flexibility.

Key Features:

• Higher Threshold for Layoffs/Closures: Increases the requirement for government approval for retrenchment, layoff, or closure from 100 to 300 workers, providing greater operational agility for businesses.

• Fixed-Term Employment: Permits fixed-term employment with benefits equivalent to permanent workers, offering employers flexibility in hiring for specific projects or periods.

• Strike Notice Period: Mandates a 14-day notice period for strikes across all sectors, promoting conciliation before industrial action.

• Reskilling Fund: Establishes a fund to support workers with reskilling in case of retrenchment (15 days' wages for reskilling).

Pros:

• Enhanced Business Flexibility: The higher retrenchment threshold provides greater operational agility for businesses, potentially attracting investment.

• Modern Employment Practices: Fixed-term employment offers flexibility for project-based hiring while ensuring worker benefits like gratuity after one year.

• Dispute Resolution: Encourages conciliation and arbitration to streamline dispute resolution, aiming to reduce flash strikes.

Cons:

• Concerns over Job Security: Trade unions, the primary force behind the Bharat Bandh, argue vehemently that the increased threshold could lead to arbitrary layoffs and diminish job security, particularly for workers in establishments with fewer than 300 employees who are now outside the ambit of requiring government approval for retrenchment.

• Restricted Strike Rights: The stringent notice period and restrictions on strikes during conciliation are seen by unions as limiting workers' collective bargaining power and a "negation of labour rights won after 150 years of struggle."

• Trade Union Fragmentation: Concerns exist that the negotiating council model might marginalize smaller unions.

3. The Code on Social Security, 2020: Expanding the Social Safety Net

Overview: This code consolidates nine social security laws, extending coverage to a wider array of workers, notably including gig and platform workers.

Key Features:

• Inclusive Social Security: Extends benefits like provident fund, insurance, and maternity benefits to unorganized, gig, and platform workers, a historic move for India's vast informal economy.

• National Social Security Board: Establishes a board to oversee schemes for unorganized workers.

• Aggregator Contributions: Mandates contributions (1-2% of turnover) from aggregators (e.g., ride-sharing or food delivery platforms) to social security funds for gig and platform workers.

• Enhanced Maternity Benefits: Strengthens provisions for women workers, including creche facilities and maternity leave.

Pros:

• Historic Inclusion: A landmark step to bring India's vast informal workforce under a formal social security umbrella.

• Addressing Gig Economy: Recognizes and provides benefits for the growing gig workforce, reflecting contemporary employment trends.

• Centralized Compliance: Simplifies social security contributions for employers by consolidating various schemes.

Cons:

• Funding Adequacy: Concerns remain about the sustainability and adequacy of government funding for schemes covering the vast unorganized sector.

• Implementation Gaps: Lack of clear mechanisms for registration and contribution for gig workers could hinder access to benefits, as evidenced by low enrollment rates in some state welfare boards for gig workers.

• Potential Employer Burden: Small businesses and startups may face financial strain due to mandatory social security contributions.

4. The Occupational Safety, Health and Working Conditions Code, 2020: Prioritizing Workplace Well-being

Overview: This code consolidates 13 laws related to workplace safety, health, and working conditions across various sectors.

Key Features:

• Broader Applicability: Applies to establishments with 10 or more workers (down from 20 for factories), extending safety norms to more workplaces, including contract workers and those in smaller establishments.

• Mandatory Standards: Mandates comprehensive safety standards, regular health check-ups, and welfare facilities (e.g., canteens, restrooms).

• Simplified Licensing: Introduces a single license for contractors.

• Migrant Worker Protections: Enhances safeguards for inter-state migrant workers, including databases and travel allowances.

• Women in Night Shifts: Permits women to work night shifts with adequate safety measures, promoting gender inclusion.

Pros:

• Expanded Safety Coverage: Extends vital safety and health protections to a larger segment of the workforce.

• Support for Migrant Workers: Addresses the unique vulnerabilities of inter-state migrants through formal registration and welfare measures.

• Gender Parity: Promotes gender inclusion by allowing women to work night shifts, subject to safety provisions.

Cons:

• Dilution of Standards: Some critics argue that the code might relax safety norms for smaller establishments, potentially compromising worker safety.

• Weakened Inspection: Concerns exist that the shift towards self-certification and digital inspections might reduce direct oversight and accountability.

• Logistical Hurdles: Effective implementation of migrant worker databases and benefits may face significant logistical and bureaucratic challenges.

Current Status and Outlook (July 2025)

While the four Labour Codes were enacted between 2019 and 2020, their full implementation has been a phased process. As of July 2025, the Ministry of Labour and Employment is actively collaborating with states to finalize rules, with many states and Union Territories having pre-published their draft rules. Nationwide enforcement is expected in phases, with large enterprises (over 500 employees) beginning immediate compliance, followed by medium enterprises (100-500 employees) and small enterprises (<100 employees) over the next two years (FY26, FY27, FY28 respectively).

However, the path to full implementation is not without contention. The recent Bharat Bandh on July 9, 2025, organized by a forum of 10 central trade unions and their associates, saw over 25 crore workers participate across various sectors, significantly disrupting banking, postal services, coal mining, and public transport in several states. Unions argue that the codes are "anti-worker" and "pro-corporate," claiming they dilute job security, suppress trade union movements, increase working hours (with the potential for 12-hour workdays under a 4-day week), and reduce workers' collective bargaining power. Their 17-point charter of demands includes the repeal of these four labour codes, an end to contractualization and privatization of public sector units, and an increase in the national minimum wage to 23Rs. 26,000 per month.

The government's stance remains focused on simplifying compliance for industry, boosting economic growth, and simultaneously extending social security benefits to a broader workforce. The success of these monumental reforms will ultimately depend on striking a delicate balance: ensuring a flexible and attractive environment for businesses to thrive, while rigorously safeguarding and enhancing the rights and welfare of India's diverse workforce. The ongoing dialogue between government, industry, and labour unions will be crucial in shaping a fair and effective labour landscape for India's future, ensuring that the "revolution" truly benefits all stakeholders.