Around five years after passing the four labour codes subsuming 29 existing labour laws in 2019-20, the government of India notified them for implementation on November 21, 2025. The Prime Minister and various other ministers of the government have been engaged in deceptive propaganda claiming that they would benefit all the workers as well as attract investment and provide the much-needed jobs.
But the reality for the workers is entirely different. Let us begin with minimum wages.
The 15th Indian Labour Conference, way back in 1957, unanimously adopted the criteria for fixing minimum wages. This along with the Supreme Court judgment in the Raptakos and Brett case has become the norm for fixing minimum wages. The Labour Code has not included this criterion to fix minimum wage.
On the other hand, the Code on Wages talks of a 'floor level minimum wage' to be fixed by the government of India. The recommendations of the Minimum Wage Advisory Boards, tripartite bodies, including representatives of the government, employers and workers, will not be binding on the government.
At present the minimum wage fixed by the government of India is Rs 168 per day, which is ridiculously low. The minimum wage fixed by almost all the state governments is now well above this. This has the potential to encourage the state governments to lower the minimum wage.
In addition, there is no 'national' floor level wage as claimed. The floor-level minimum wage will be different in different regions. At present, around 45% of workers get less than the prescribed minimum wages. Their numbers will further increase as there will be no inspection as per the Labour Code, but self certification by the employers that they are complying with the statutory obligations.
Besides, around 80 lakh workers, most of them women, employed in the various departments of government of India to implement its schemes at the ground level, like the anganwadi workers and helpers, ASHAs, midday meal workers, the para teachers etc are not even recognised as workers. They will not be covered by the Code on Wages.
No universal social security too
Contrary to what is being claimed, the Social Security Code does not guarantee universal social security in any sense. The earlier sector-specific Acts, for example for beedi workers, mines workers etc provided social security from a designated fund collected through a cess. But, with the introduction of GST, collection of cess for these funds has been stopped and they are deprived of funds.
The Social Security Fund does not specify any new scheme for social security. Even for the gig and platform workers, the Code only talks about formulating schemes but does not specify any time frame or what benefits would be provided. The proposed aggregator contribution of 1-2% of turnover is too inadequate for any meaningful social security.
Aadhar-based portability is meaningless unless employment relation is established and employers' obligation is ensured through statutory provisions, employment records and effective enforcement machinery. These are absent in the Code.
Legalises permanent temporariness and hire and fire
The Industrial Relations (IR) Code talks of parity for Fixed Term Employees with permanent employees in pay, benefits and working conditions. The Social Security Code talks of providing benefits like EPF, ESI, gratuity etc to fixed-term employees. But the reality is that fixed-term employment will replace permanent employment with short-term contracts. There is no limit on how many times a worker can be employed with Fixed Term Contract.
The new code, to put it simply, legalises permanent temporariness in perennial and core jobs. Gratuity after one year does not compensate for loss of continuity in service, seniority etc. In the absence of inspection and unionisation there will be no guarantee of implementation of whatever may be in the Acts. It is just meant to destroy stable employment and prevent unionisation.
The new IR Code also raises the threshold of workers in an establishment who can be fired without prior government permission from 100 to 300 for. This enables hire and fire for the employers. More than 90% of the workers will thus be thrown out of any protection and will be at the mercy of employers.
This also makes it difficult for workers to register unions. Going on legal strike will be almost impossible. Workers will be imposed with huge fines and even imprisonment for going on so-called illegal strike.
Increased exploitation of workers a given
The Occupational Safety Health and Working Conditions (OSH) Code allows for increase in the working hours from eight hours to 12 hours. Already several state governments, except the LDF government in Kerala, have amended their laws, allowing for the increase in working hours. The right of the workers to an eight-hour working day achieved through united struggles and sacrifices is sought to be negated through the OSH Code.
Along with the Bharatiya Nyay Samhita and Jan Vishwas Act implementation ofthe Labour Codes are meant to criminalise even routine trade union activities and decriminalise violation of Acts by the employers.
The Shrama Shakti Niti put in public domain by the government says that the labour ministry will reposition itself as facilitator of employment, abdicating its mandatory responsibility of implementing labour laws. Thus, the claim of faster resolution of industrial resolution will actually mean facilitating increased exploitation by the employers, not in favour of the workers.
Why argument that it will create jobs is fraudulent
The Labour Codes are in fact tools for enslavement of the workers. They are meant to serve the interests of the employers in the name of promoting 'Ease of Doing Business' by providing them union free workplaces.
The argument that this would attract investment and create jobs is also fraudulent. It is meant to mislead and create illusions among the unemployed youth of our country.
There is no evidence, national or international, that diluting labour rights creates employment. Rajasthan's labour law changes of 2014-15, often cited by the government, failed to increase jobs. They only accelerated contractualisation.
Consistent stagnation/decline in employment generating investment could not be denied even in official reports including from RBI. These Codes in fact will worsen the situation manifold by replacing secure jobs with contract and precarious employment like contract labour, apprentices/ trainees, interns etc.
This is why the joint platform of trade unions comprising the ten central trade unions and almost all the independent industrial/ sectoral all India federations, which represent the overwhelming majority of the workers of our country, has been consistently opposing them.
The anger of the workers against the labour codes was clearly evident in the spontaneous huge protests that erupted on November 22, 2025 immediately after the notification for their implementation was issued and on November 26, 2025 at the call of the joint trade union platform and the Samyukta Kisan Morcha. This will be further intensified including massive sectoral and general strikes in the coming days.
(Dr K Hemalata is a Central Committee member of Communist Party of India (Marxist). She is the first woman to lead a union—the Centre of Indian Trade Unions— at the national level. Views are personal.)