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Labour Law

Workers Decry Dilution of Rights in New Labour Codes

bySahiba Sharma
Dec 1, 2025 10:08 AM
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Workers and farmer bodies across India staged massive protests on November 26, 2025, against the implementation of the four new Central Labour Codes.

The nationwide demonstrations were led by a joint platform of ten central trade unions, including INTUC, AITUC, and CITU, who denounced the codified laws as unilaterally imposed, ‘anti-worker,’ and deeply regressive.

The unified codes—which consolidate 29 existing central labour laws—were formally notified by the government on November 21, 2025, despite years of strenuous objections from labour representatives.

Labour Codes: Trade Union Backlash and Core Grievances

The joint platform issued a scathing statement following the notification, labeling the move as a “deceptive fraud committed against the working people of the nation.”

Union leaders argue that the consolidation dilutes hard-won rights and dismantles protections that existed in older legislation by using it as a cover.

They strongly condemned the government for proceeding without convening the long-overdue Indian Labour Conference (ILC)—the traditional forum for tripartite consultation—claiming the new framework exclusively caters to corporate demands and “capitalist cronies.”

The unions stressed that the laws were implemented amid deepening unemployment and rising inflation, calling the timing an “undemocratic” act.

Contentious Provisions Sparking Fury

The fiercest objections are centered on the Industrial Relations Code (IR Code, 2020).

Critics highlight the provision that raises the threshold for seeking prior government approval for layoffs, retrenchments, and establishment closures from 100 to 300 workers.

Unions argue this change effectively grants employers greater ‘hire and fire’ flexibility and exempts approximately 70% of industrial establishments from protective laws.

Furthermore, the IR Code requires unions to achieve a high bar of 51% membership for recognition as the sole negotiating body, which weakens collective bargaining power.

Concerns also linger over the Code on Wages, where critics view the replacement of the traditional ‘Inspector’ role with an ‘Inspector-cum-Facilitator’ as weakening enforcement and compliance checks.

Government’s Justification for Modernisation

In contrast, the Central Government maintains that the codes represent historic reforms designed to modernise the labour framework, simplify compliance, and expand the social security net.

They argue that these measures will foster economic growth and create a future-ready workforce.

Officials assert the new rules introduce universal minimum wages, formalize gig and platform workers with social security contribution requirements, mandate appointment letters for all employees, and ensure equal pay for all genders.

The government claims these changes will foster economic growth, reduce the compliance burden for businesses, and create a ‘future-ready’ workforce aligned with global standards.

Conclusion: Demand for Repeal of Labour Codes

Despite the government’s assurance of worker welfare, the trade unions remain resolute, demanding the complete repeal of the four codes.

The trade unions submitted memorandums to the President of India and vowed to intensify their nationwide agitation until the withdrawal of the ‘anti-worker’ laws.

This action sets the stage for a prolonged confrontation over the future of labour rights in the country.


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