Nationwide Implementation of India’s Four Labour Codes

Source: IE

Why in News? 

India has announced the implementation of the four Labour Codes  (the Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, Occupational Safety, Health and Working Conditions (OSH) Code, 2020) replacing 29 earlier labour laws. 

• The reform aims to modernise labour regulation, strengthen worker protections and create a simpler, future-ready framework supporting a resilient workforce and Aatmanirbhar Bharat.
• The four labour codes were enacted based on the 2nd National Commission on Labour (2002), which recommended merging multiple labour laws into four functional codes.

What are the Key Provisions of the Four Labour Codes?

• Labour Code: A labour code is a consolidated set of laws regulating employer–employee relations, including wages, social security, industrial relations, and workplace safety.

India’s Four Labour Codes 

• The Code of Wages, 2019: It merges four key laws (The Payment of Wages Act, 1936; The Minimum Wages Act, 1948; The Payment of Bonus Act, 1965; and The Equal Remuneration Act, 1976) into a single framework. 
  • It brings uniformity in wage rules, ensures fair and timely payment, promotes gender equality and simplifies compliance for employers while strengthening workers’ rights.
• The Industrial Relations Code, 2020: It combines and simplifies provisions from earlier laws like the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947.
  • It seeks to balance worker rights with industrial stability by streamlining rules on union recognition, employment terms and dispute resolution.
• The Code on Social Security, 2020: It merges nine existing laws like The Employee's Compensation Act, 1923, The Employees' State Insurance Act, 1948, The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 into one unified framework and extends benefits to all workers, including those in the unorganised, gig and platform sectors. 
  • It covers maternity, health, life insurance and provident fund benefits while promoting digital processes and easier compliance.
• The Occupational Safety, Health and Working Conditions Code 2020: It consolidates 13 labour laws such as Factories Act, 1948, Plantations Labour Act, 1951, and Mines Act, 1952. 
  • The Code aims to ensure safer working conditions while simplifying compliance for businesses, creating a more efficient, fair and future-ready labour framework.

Labour Code	Major Provisions
The Code of Wages, 2019	Universal minimum wage for all workers (organised + unorganised). Wage fixation based on skill, region, working conditions. A statutory floor wage will be set by the government based on living standards with scope for regional variation. States cannot set wages below this. No discrimination in hiring, wages or working conditions on the basis of gender, including transgender identity. Overtime must be paid at least twice the normal wage rate. Employers liable for delayed/non-payment
The Industrial Relations Code, 2020	Provide fixed-term employment with equal benefits and gratuity after 1 year. Employers must deposit 15 days’ wages per retrenched worker into their account within 45 days to support re-skilling and re-employment. A union with 51% membership becomes the negotiating body; otherwise, a negotiating council is formed  from unions with at least 20% representation. Mandatory women’s representation in grievance bodies.
The Code on Social Security, 2020	Wages now follow a uniform definition covering basic pay, dearness allowance and retaining allowance, with at least 50% of total remuneration counted for calculating social security, gratuity and pension benefits. Employees’ State Insurance (ESI) now applies nationwide. Establishments with fewer than 10 employees may opt in voluntarily, while hazardous occupations and plantations are mandatorily covered. Employee Provident Fund (EPF) inquiries must be initiated within five years and completed within two years (extendable by one), and cases can no longer be reopened suo motu, ensuring time-bound resolution. New definitions are included to add “aggregator,” “gig worker,” and “platform worker” to enable social security coverage. A dedicated Social Security Fund will support unorganised, gig and platform workers with life, health, disability and old-age benefits, financed partly through compounding penalties. Accidents during travel between home and workplace are now deemed employment-related, qualifying for compensation.
The Occupational Safety, Health and Working Conditions Code 2020	The code provisions can apply even to establishments with a single employee if work involves high risk. The definition of inter-state migrant workers now includes those hired directly, through contractors or who move on their own.  They will receive an annual travel allowance, along with portability of ration under Public Distribution System and social security benefits across states. Permits night work for women provided they consent and employers ensure safety. A National Worker Database to be developed for unorganized workers including migrants to improve access to jobs and welfare. Working Hours capped at 8 hours per day and 48 hours per week; overtime paid at double wages with consent.

What is the Need to Reform India’s Labour Laws?

• Fragmented Legal Framework: India had 29 separate labour laws with overlapping provisions, making compliance complex and time-consuming for workers and employers.
• Outdated Provisions: Many laws were created during the pre-Independence and early post-Independence era, and no longer suited modern industry practices, technology, or new forms of employment.
• High Compliance Burden: Multiple licences, registrations and returns increased paperwork and made it difficult for businesses especially for Micro, Small, and Medium Enterprises (MSME)  to operate smoothly.
• Limited Worker Coverage: Several protections applied only to specific categories or sectors, leaving large numbers of informal and unorganised workers uncovered.
• Changing Nature of Work: The rise of gig work, platform jobs, fixed-term employment and flexible service-based roles required updated regulatory frameworks.
• Global Competitiveness: Most major economies like Singapore have modernised and consolidated labour rules, and India needed similar reforms to attract investment and support growth.
• Improving Worker Welfare: The earlier system lacked uniform standards for wages, safety and social security, leading to gaps in labour protection.
• Boosting Employment and Formalisation: Simplified rules support industries, improve job creation and help shift workers from informal to formal employment.

What are the Key Concerns Regarding India’s New Labour Codes?

• Higher Compliance Burden for Small Businesses and MSMEs: Expanded ESIC, PF and safety mandates raise labour costs significantly for micro and small enterprises. 
  • MSMEs may need to restructure workforce size, invest in digital HR systems, medical checks and new workplace standards.
• Coordination Between Centre and States: Labour falls under the Concurrent List, so both the Centre and states must frame and align their rules. 
  • State-level flexibility in thresholds and exemptions may create confusion, compliance gaps and legal disputes, resulting in uneven worker protections across the country.
• Regulating Strikes and Union Recognition: The 51% single-union rule may marginalise smaller unions and complicate representation.
  • Strike restrictions may escalate tensions rather than prevent them if workers feel procedural hurdles are unfair.
• Awareness Gap Among Workers: Many workers especially informal, migrant and contractual may not understand new entitlements such as appointment letters, ESIC, floor wages or grievance rights.
• Concerns Around Fixed-Term Employment: Employers may overuse FTE contracts to avoid permanency, increasing job insecurity.
  • Courts may face rising litigation on whether repeated fixed contracts constitute disguised permanent employment.
  • The retrenchment approval threshold has increased from 100 to 300 workers, offering employers more flexibility but potentially weakening worker protection.
• Workforce Disruption During Transition: Changes in wage structures, overtime rules, and employment categorisation may lead employers to pause hiring.

What Measures are Needed for Effective Implementation of the New Labour Codes?

• Uniformity Across States: To harmonize implementation of Labour codes, a model rulebook or intergovernmental labour council could reduce confusion and ensure uniform protection standards nationwide.
• Safeguards Against Misuse of Fixed-Term Employment: Clear guidelines must prevent employers from using fixed-term contracts to avoid permanency.
  • Regular audits and grievance redressal mechanisms should protect workers from disguised exploitation.
• Strengthen Social Security for Gig Workers: Develop a National Gig and Platform Workers Policy mandating aggregator contributions.
• Capacity and Compliance Support for MSMEs: Provide digital helpdesks, simplified filing modules, and temporary fiscal support (such as EPF co-payment) to help small firms absorb cost and compliance transitions.

Conclusion

The new Labour Codes mark a major shift in India’s labour framework, aiming to balance worker welfare with business efficiency. By simplifying compliance, improving safety and ensuring fair wages, the reforms set the foundation for a more transparent, equitable and growth-oriented labour ecosystem that supports both workers and industry.

Drishti Mains Question: Q. India’s consolidated Labour Codes strike a balance between labour welfare and industrial flexibility.” Critically examine.

Judiciary Cannot Impose Timelines on President and Governors: SC

Source: TH

Why in News? 

A 5-judge Constitution Bench of the Supreme Court of India has delivered its advisory opinion in the 16th Presidential Reference under Article 143 of the Constitution. 

• The Court ruled that it cannot impose judicial timelines on the President or Governors for assenting to State Bills, declaring such timelines to be against the principles of federalism and the doctrine of separation of powers.
• The reference stemmed from the Court’s ruling in State of Tamil Nadu vs Governor of Tamil Nadu (April 2025), which had introduced timelines for constitutional assent and deem assent for pending bills.

What are the Key Highlights of SC Ruling on 16th Presidential Reference?

• No Judicially-Imposed Timelines: The Court held that neither a Governor (under Article 200) nor the President (under Article 201) is subject to fixed, court-imposed timelines for granting or withholding assent to bills, as doing so would amount to judicial overreach and violate the doctrine of Separation of Powers.
  • The Court clarified that Articles 200 and 201 contain no fixed timelines, and the phrase “as soon as possible” cannot be interpreted as a strict or enforceable deadline.
  • However, the SC held that “prolonged, unexplained, and indefinite inaction” can be reviewed by the judiciary, and in such cases the Court may direct the Governor to act, but without imposing a deadline or examining the merits of the decision.
• ‘Deemed Assent’ is Unconstitutional: The Court firmly rejected the idea that a bill automatically becomes law (“deemed assent”) simply because the Governor or President did not act within some timeframe.
  • The Court held that deemed assent has no constitutional basis and using Article 142 to create it is impermissible, as it would let the judiciary replace the Governor or President and violate separation of powers.
• No Mandatory SC Advice for President: SC clarified that the President is not mandatorily required to seek the Court’s opinion under Article 143 for every reserved bill, and that decisions under Article 201 can be taken based on the President’s own constitutional satisfaction.

What is the Role of the Governor and President after a State Legislature Passes a Bill?

Governor's Role (Article 200)

• After a State Legislature passes a Bill, it is sent to the Governor under Article 200.
• The Governor may:
  
  • Grant Assent: The Governor may approve the Bill, allowing it to become law. 
  • Withhold Assent: The Governor has the authority to refuse assent to the Bill. 
  • Return the Bill (except a Money Bill)  for Reconsideration: The Governor may send the Bill back to the State Legislature for further review and reconsideration.
    • If the legislature passes the bill again after reconsideration, the Governor is limited to two options: either grant assent or reserve it for the President. At this stage, the Governor cannot withhold assent again.
  • Reserve for the President’s Consideration: In certain cases, the Governor can reserve the Bill for the President’s approval, especially if the Bill concerns matters of national importance or conflicts with central laws.

President’s Role (Article 201)

• When a bill is reserved by the Governor, It goes to the President under Article 201.
• The President may:
  • Grant Assent: The President can approve the Bill, making it law. 
  • Withhold Assent: The President may choose to withhold assent to the Bill.  
  • Return for Reconsideration: For non-Money Bills, if the President withholds assent, the President can direct the Governor to send the Bill back to the Legislature for reconsideration.
    • The Legislature is required to act within six months. If the Bill is passed again, it must be resubmitted to the President for final approval. 
    • If passed again after reconsideration, the President must take a final decision, with no constitutional timeline prescribed.

Conclusion

The SC ruling restores the constitutional scheme by rejecting timelines and deemed assent. It protects the discretion of the Governor and President while allowing limited review against unreasonable inaction. Overall, it reinforces separation of powers in legislative assent.

Drishti Mains Question: Q. Examine the constitutional scheme governing the role of the Governor and the President after a State Legislature passes a Bill.

India, Brazil, and South Africa (IBSA) Forum

Source: IE

Why in News?

On the sidelines of the G20 Summit in Johannesburg, India’s Prime Minister met with the Brazilian and South African President to discuss strengthening the IBSA (India-Brazil-South Africa) forum. 

• The meeting focused on climate-resilient agriculture, digital innovation, UN reforms, terrorism, and Global South initiatives.

What is the IBSA Forum?

• About: IBSA is a unique forum of India, Brazil, and South Africa, three large democracies and major economies from three continents facing similar challenges. 
  • Formalized as the IBSA Dialogue Forum on 6 June 2003 in Brasilia, issuing the Brasilia Declaration. South Africa is the current IBSA Chair.
  • IBSA does not have a headquarters or a permanent secretariat.
• Areas of Cooperation: Cooperation in IBSA is on 3 fronts:
  • Political consultation: Coordination on global and regional political issues.
  • Trilateral collaboration: Joint projects through working groups and People-to-People Forums.
  • Assistance to other developing countries: Projects implemented through the IBSA Fund.
• IBSA Trust Fund: Established in 2004, operational from 2006 for poverty and hunger alleviation.
  • Allocated USD 53.27 million to 46 South-South development projects in 34 partner countries, mostly Least Developed Countries (LDCs).
• IBSAMAR: Joint multinational maritime exercise among India, Brazil, and South Africa navies. 8th edition held in October 2024 off the coast of South Africa.
• Initiatives Proposed in 2025: India’s PM proposed a National Security Advisers-level Dialogue for regular security and counter-terrorism consultations among the three countries. 
  • He also suggested an IBSA Fund for Climate-Resilient Agriculture and a Digital Innovation Alliance to share UPI, CoWIN, and cybersecurity frameworks.

What Role Does the IBSA Forum Play in Advancing India’s Interests?

• Voice of the Global South: IBSA, representing three major democracies and economies from Asia, South America, and Africa, serves as a collective voice to advance the shared interests and development priorities of the Global South.
  • It allows India to assert leadership in the Global South and influence the agenda without the dominance or interference of China, unlike in BRICS or SCO.
• Advocacy for Multilateral Reform: A key goal of IBSA is to push for global governance reform, especially the UN Security Council (UNSC), as all members are candidates for permanent membership and argue current structures do not reflect 21st-century geopolitics.
  • This aligns directly with India’s quest for a permanent UNSC seat and amplifies its reform agenda.
• Democracy and Shared Values: IBSA is united by shared values as large, multi-ethnic democracies, enabling cooperation on human-centric development and a rules-based international order.
  • It enhances India’s soft power by positioning it as a responsible "Democratic Anchor" of the developing world, distinguishing it from authoritarian alternatives like China.
• Practical Cooperation through IBSA Fund: The IBSA Fund exemplifies South-South Cooperation, pooling resources for development projects in health, education, and agriculture, demonstrating solidarity beyond member countries.
  • It provides a low-cost, high-goodwill tool for India to project itself as a benevolent development partner without the accusation of debt-trap diplomacy.
• Strategic Dialogue on Global Issues: The forum enables coordination on terrorism, climate change, and trade, amplifying their influence in shaping global agendas.
  • It serves as a platform to globalize India’s concerns on cross-border terrorism (demanding "no double standards") and to export Indian solutions like UPI and Digital Public Infrastructure (DPI) to other emerging economies.

Conclusion

The IBSA Forum strengthens South-South cooperation, uniting India, Brazil, and South Africa in promoting democracy, climate-resilient development, digital innovation, and global governance reform. It amplifies the Global South’s voice while facilitating strategic dialogue on security, trade, and multilateral issues.

Drishti Mains Question: Q. Elaborate on the key areas of cooperation under the IBSA framework. Recently, what new initiatives have been proposed to strengthen this trilateral partnership?

Mekedatu Dam

Source: TH

Karnataka has announced that it would submit a revised Detailed Project Report (DPR) to the Centre for the Mekedatu dam across the Cauvery river.

• This comes after Tamil Nadu raised concerns over Karnataka's Mekedatu dam, citing Cauvery water disputes, excessive water storage, and irregular water release.

Mekedatu Dam

• About: It involves constructing a balancing reservoir near Kanakapura, Karnataka, at the deep gorge of Mekedatu where the Cauvery and Arkavathi rivers meet. 
  • It aims to provide drinking water to Bengaluru and nearby areas and generate 400 MW of hydroelectric power.
• Controversy: Tamil Nadu, the lower riparian state, strongly opposes the project, fearing reduced downstream water flow and is central to the Cauvery River water sharing dispute.

Cauvery River Water Dispute

• About the Dispute: The dispute involves Karnataka, Tamil Nadu, Kerala, and Puducherry. The Cauvery river originates in Karnataka, flows through Tamil Nadu, with major tributaries from Kerala.
• Historical Genesis: The dispute is over 150 years old, originating from 1892 and 1924 agreements between the Madras Presidency and Mysore, that required the upper riparian state (Karnataka) to obtain consent from the lower riparian state (Tamil Nadu) for construction projects.
• Renewed Conflict: A fresh dispute began in 1974 when Karnataka started diverting water without Tamil Nadu's consent, violating previous agreements.
• Resolution Mechanism: The Cauvery Water Disputes Tribunal (CWDT), established in 1990, delivered its Final Order in 2007, specifying water-sharing among all riparian states. 
  • In the State of Tamil Nadu vs. State of Karnataka (2018), the SC declared the Cauvery river a national asset and largely upheld the CWDT award.
  • The Cauvery Water Management Authority (CWMA) was created after the Supreme Court’s 2018 verdict to ensure the implementation of the CWDT’s final order. 

Read More: Mekedatu Project

Lachit Borphukan

Source: PIB

On Lachit Diwas, the Prime Minister paid tribute to Lachit Borphukan, honouring him as a symbol of courage, patriotism, and inspiring leadership.

• Early Life: Lachit Borphukan (born 24^th November 1622 at Charaideo, Assam) was the youngest son of Momai Tamuli Borbarua, a key military administrator under Ahom ruler Pratap Singha. 
  • Trained in administration, military strategy, and scriptures, he grew up amid Mughal–Ahom wars and later rose as one of Assam’s greatest military leaders.
  • Recognising his leadership, he was appointed as Borphukan (Commander-in-Chief) to reclaim Assam from Mughal occupation after the Mir Jumla invasion.
• Battle of Saraighat (1671):  Using guerrilla warfare, river-based naval tactics, and strategic fortifications, Lachit defeated the Mughal army led by Raja Ram Singh I.

  • The victory halted Mughal expansion into the Northeast and preserved Assam's sovereignty.

• Legacy and Recognition: Lachit died in 1672 from illness, and his memorial (Lachit Maidan) stands near Jorhat. He remains a symbol of courage, patriotism, leadership, and military strategy.

  • 24^th November is celebrated as Lachit Divas and the Lachit Borphukan Gold Medal at the National Defence Academy (NDA) honours excellence in military leadership.

Read more: General Lachit Borphukan of Ahom Kingdom

Punjab Declares Three Historic Sikh Sites as Holy Cities

Source: IE

Punjab has passed a resolution to declare the Amritsar Walled City, Anandpur Sahib, and Talwandi Sabo as holy cities, marking a major cultural and governance decision aligned with the 350th martyrdom anniversary of Guru Tegh Bahadur.

• The decision bans the sale and consumption of liquor, meat, tobacco, and other intoxicants in the designated holy areas. These places also hold religious significance in Sikh history, hosting three of the five Takhts. 
• Takhts: A Takht, which means a throne, is a seat of temporal authority for Sikhs. There are five Sikh Takhts, three in Punjab and one each in Maharashtra and Bihar.
  • Akal Takht in Amritsar, Punjab: Established in 1606 by Guru Hargobind, is the highest seat of Sikh authority and represents the union of miri (temporal power) and piri (spiritual authority). 
  • Takht Sri Keshgarh Sahib (Anandpur Sahib, Punjab): Site where the Khalsa was created in 1699.
  • Takht Sri Damdama Sahib (Talwandi Sabo, Punjab): Where Guru Gobind Singh finalised Sikh scripture.
  • Takhat Sri Harimandir Ji Patna Sahib (Patna, Bihar): Birthplace of Guru Gobind Singh.
  • Takhat Sachkhand Sri Hazoor Sahib (Nanded, Maharashtra): Site of Guru Gobind Singh final days and cremation in 1708.

Read more: Guru Tegh Bahadur Prakash Purab

EB-1A & EB2-NIW Visa Program

Source: ET

The H-1B visa fee hike to USD 100,000 starting September 2025 is driving Indian professionals to explore alternatives like the EB-1A and EB2-NIW visas, especially amid stricter U.S. immigration policies.

• EB-1A Visa: The EB-1A is for individuals with extraordinary abilities in fields like science, arts, business, or education. 
  • It does not require employer sponsorship, but applicants must meet at least three out of ten criteria, such as significant contributions or high remuneration. It leads to permanent residency (Green Card) with no time limit.
• EB2-NIW Visa: The EB2-NIW allows self-petition for professionals working in sectors critical to U.S. national interests, such as technology and healthcare. Unlike standard EB2, it doesn’t require employer sponsorship. 
  • It leads to permanent residency with no time limit if qualifications are maintained.
  • Indians make up a significant proportion of applicants for both EB-1A and EB2-NIW, especially in high-skill sectors like technology and research.
• Benefits: They offer faster processing, long-term stability, and valuable green card opportunities, making them strong alternatives to the uncertain H-1B.

Read More: India-US Strategic Synergy