Introduction
India’s labour law framework has undergone a historic transformation. For decades, organizations had to comply with 29 separate labour laws, each with its own definitions, procedures, and compliance requirements. This fragmented system often led to confusion, duplication, and litigation.
To simplify and modernize the landscape, the Government of India consolidated these laws into four Labour Codes:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions (OSH) Code, 2020
These Codes aim to streamline compliance, reduce ambiguity, and extend protections to new categories of workers such as gig and platform workers.
Comparative Table – Old Acts vs. New Labour Codes
| New Labour Code | Old Acts Subsumed | Key Coverage |
| Code on Wages, 2019 | – Payment of Wages Act, 1936 – Minimum Wages Act, 1948 – Payment of Bonus Act, 1965 – Equal Remuneration Act, 1976 | Standardizes wage definition, minimum wages, timely payment, bonus, and gender equality in remuneration. |
| Industrial Relations Code, 2020 | – Industrial Disputes Act, 1947 – Trade Unions Act, 1926 – Industrial Employment (Standing Orders) Act, 1946 | Governs strikes, lockouts, layoffs, retrenchment, trade union recognition, and dispute resolution. |
| Code on Social Security, 2020 | – Employees’ Provident Fund Act, 1952 – Employees’ State Insurance Act, 1948 – Maternity Benefit Act, 1961 – Payment of Gratuity Act, 1972 – Employees’ Compensation Act, 1923 – Unorganised Workers’ Social Security Act, 2008 | Consolidates PF, ESI, gratuity, maternity, compensation, and social security schemes for organized & unorganized workers. |
| OSH Code, 2020 | – Factories Act, 1948 – Mines Act, 1952 – Contract Labour Act, 1970 – Inter‑State Migrant Workmen Act, 1979 – Shops & Establishments Act (various states) – Other sectoral safety laws | Covers health, safety, working hours, welfare, and conditions across industries and establishments. |
Standalone Acts (not subsumed):
- PoSH Act, 2013 (Prevention of Sexual Harassment at Workplace)
- Labour Welfare Fund Acts (state‑specific)
Key Abbreviations Explained Under the Codes
| Abbreviation | Full Form | Old Act | New Labour Code |
| EPF | Employees’ Provident Fund | EPF Act, 1952 | Code on Social Security, 2020 |
| EPS | Employees’ Pension Scheme | EPS 1995 | Code on Social Security, 2020 |
| UAN | Universal Account Number | EPFO Scheme | Code on Social Security, 2020 |
| ESIC | Employees’ State Insurance Corporation | ESI Act, 1948 | Code on Social Security, 2020 |
| CLRA | Contract Labour Regulation & Abolition Act | CLRA Act, 1970 | OSH Code, 2020 |
| ID Act | Industrial Disputes Act | ID Act, 1947 | Industrial Relations Code, 2020 |
| MW Act | Minimum Wages Act | MW Act, 1948 | Code on Wages, 2019 |
| PoSH | Prevention of Sexual Harassment | PoSH Act, 2013 | Standalone |
| PoB | Payment of Bonus Act | PoB Act, 1965 | Code on Wages, 2019 |
| PoG | Payment of Gratuity Act | PoG Act, 1972 | Code on Social Security, 2020 |
| S&E | Shops & Establishment Act | State Acts | OSH Code, 2020 |
| LWF | Labour Welfare Fund | State Acts | Standalone |
Important Case Law References which everyone should know-
- EPF & Higher Pension: R.C. Gupta vs. Regional Provident Fund Commissioner (2016) — clarified that employees can opt for higher pension contributions beyond the wage ceiling.
- PoSH Compliance: Vishaka vs. State of Rajasthan (1997) — laid the foundation for workplace harassment law, later codified in the PoSH Act, 2013.
- Minimum Wages: Airfreight Ltd. vs. State of Karnataka (1999) — reinforced that minimum wages are non‑negotiable and binding.
- Contract Labour: Steel Authority of India vs. National Union Water Front Workers (2001) — clarified abolition of contract labour does not automatically absorb workers.
Compliance Checklist for HR & Employers – FREE
Under Code on Wages
- Maintain updated wage registers.
- Ensure timely payment (monthly, before 7th/10th day).
- Pay minimum wages as notified by Central/State governments.
- Bonus calculation and disbursement annually.
Under Industrial Relations Code
- Register trade unions.
- Issue standing orders for establishments with 300+ workers.
- Follow due process for retrenchment/layoffs.
- Maintain grievance redressal committees.
Under Social Security Code
- Register employees under PF, ESI, gratuity, maternity schemes.
- Ensure UAN generation and Aadhaar seeding.
- Pay employer contributions on time.
- Extend benefits to gig/platform workers where applicable.
Under OSH Code
- Maintain health & safety registers.
- Provide welfare facilities (canteen, crèche, first aid).
- Limit working hours (8 hours/day, 48 hours/week).
- Ensure annual health check‑ups for certain categories.
Standalone Acts
- PoSH: Constitute ICC, file annual returns, conduct awareness training.
- LWF: Deduct and deposit contributions as per state rules.
Conclusion
The Labour Codes represent a paradigm shift in India’s employment law regime. Employers must update HR policies, payroll systems, and compliance manuals to align with the Codes. Employees, on the other hand, should be aware of their rights under the new framework to ensure fair treatment and protection.
By understanding the comparative mapping of old Acts to new Codes, organizations can avoid confusion, reduce litigation risks, and foster a culture of compliance.
Disclaimer:
This blog is for educational purposes only. It does not constitute legal advice. Employers and HR professionals should consult qualified legal experts before making payroll or compliance decisions. The author and publisher disclaim liability for reliance on this content.