Introduction

Drafted for an era of slower change, our traditional labour laws now confront a corporate world shaped by rapid innovation and evolving work dynamics.

Originally, the old laws were designed to protect industrial interests of Britons rather than modern worker welfare. There was a messy collection of nearly 30 laws that were written in ancient times of manual labour, but now the ecosystem is moving from complexity to simplicity.

Now, the 29 laws have been outlined into 4 main streamlined pillars. For future professionals, this changed ecosystem has resulted in more transparency, transferable benefits and much more. The laws now finally recognise and protect the life of professionals in social security.

By establishing codes like the 50% Wage Rule, work-from-home models, and women's safety, a more flexible environment for working professionals is created.

Simplification Through New Labour Codes

To rationalise and modernise India’s labour law framework, the government has consolidated multiple statutes into 4 Unified Labour Codes, aimed at simplifying compliance and strengthening worker protection.

Code on Wages, 2019 – This code ensures that all workers receive a minimum wage and are paid on time, while providing a uniform definition of wages across sectors to simplify compliance.

Industrial Relations Code, 2020 – This code regulates trade unions and establishes clear procedures for industrial disputes, strikes, layoffs, and retrenchment, aiming to balance worker protection with employer flexibility.

Code on Social Security, 2020 – This code provides social security benefits such as provident fund, insurance, and gratuity, while expanding coverage to gig, platform, and unorganised workers.

Occupational Safety, Health and Working Conditions Code, 2020 – This code standardises workplace safety, health, welfare, working hours, and service conditions, ensuring safer and fairer work environments across industries.

What It Means For Fresh Graduates

The new labour laws have brought changes that impact fresh graduates entering the workforce. These reforms promote transparency, fairness, and improved working conditions from the start of their careers.

Employers must provide appointment letters outlining salary components like basic pay, allowances, and deductions. This clarity helps fresh graduates understand their compensation and avoid disputes.

The laws regulate working hours, leave, and overtime. Employees are entitled to leave, including weekly offs and paid leave, and overtime work must be compensated. These measures support a better work-life balance, particularly for those starting their careers.

These changes create a more structured and transparent work environment, empowering fresh graduates to start their careers with confidence and an understanding of their rights.

Corporate And Recruiter's Perspective

India has consolidated 29 labour laws into four Labour Codes, simplifying HR and recruitment processes.

Gratuity is now payable after one year of service, compared with five years earlier.

Basic pay must constitute 50% of the CTC, increasing provident fund (PF) and Employee Pension Scheme (EPS) benefits, even if take-home pay is lower.

Labour Codes standardise definitions to reduce workplace disputes.

Internal grievance committees must resolve complaints within 30 days before escalation.

Two-member expert tribunals ensure remaining disputes are resolved efficiently with industry-specific insights, avoiding prolonged court procedures.

From Policy To Practice: The Impact Of New Labour Codes

Impacts on Employer:

Code on Wages, 2019 - This code makes wage rules clearer but increases employers’ legal payment responsibilities.

Industrial Relations Code, 2020 - This code gives employers more freedom in hiring and retrenchment within set rules.

Code on Social Security, 2020 - The code simplifies social security rules while increasing employer contributions.

Occupational Safety, Health and Working Conditions Code, 2020 - The code sets common safety standards, raising compliance duties for employers.

Impacts on Employees:

Code on Wages, 2019 - The code ensures fair and timely wages, though take-home pay may reduce due to deductions.

Industrial Relations Code, 2020 - The code improves dispute resolution but makes strikes more difficult for workers.

Code on Social Security, 2020 - The code expands social security benefits to more workers, including gig workers.

Occupational Safety, Health and Working Conditions Code, 2020 - The code improves safety, health, and working conditions at the workplace.

In essence, the new Labour Codes aim to create a more organised, transparent, and inclusive labour framework that benefits both employers and employees.

Labour Laws and Student Career Readiness

An understanding of basic labour laws helps students avoid workplace exploitation and negotiate employment terms with greater confidence.

The new labour codes may lead to a lower take-home salary and overall CTC, which can negatively affect placement statistics and salary perceptions in colleges.

Reduced CTC figures may influence students’ job choices and institutional placement outcomes.

Ultimately, awareness of labour laws is not just a legal need but an essential skill for students now entering a regulated and competitive job market.