2024 · GS Paper 3 · Q11 · 15 marks
Discuss the merits and demerits of the four 'Labour Codes' in the context of labour market reforms in India. What has been the progress so far in this regard?
In short
The four Labour Codes merge 29 laws, simplifying compliance, universalising minimum wages and recognising gig workers, but critics fear weaker job security, curbs on strikes and a thinner safety net. All four codes came into force on 21 November 2025 after most States and UTs pre-published draft rules.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 276 words
Ease of Compliance
A single registration, licence and return replace many filings, and inspectors are recast as inspector-cum-facilitators.
Universal Minimum Wage
Every worker, not only scheduled employments, gets a statutory floor and equal pay.
Gig Worker Coverage
Gig and platform workers are recognised, with aggregators contributing 1-2% of turnover to a welfare fund.
Labour Flexibility
Government permission for lay-offs now applies at 300 workers instead of 100, and fixed-term jobs carry equal benefits.
Job Insecurity
Unions fear a "hire and fire" culture under the higher threshold.
Curbs on Strikes
Strike-notice rules once limited to public utilities now apply to all establishments, weakening bargaining.
Smaller Safety Net
The OSH Code's higher factory threshold leaves many small units uninspected, and gig benefits remain scheme-based.
All four codes came into force on 21 November 2025, after 32 States and UTs pre-published draft rules, and social protection coverage reached 64.3% in 2025.
Way Forward
Dialogue and Capacity
Revive tripartite consultation, help laggard states notify final rules, and link e-Shram to EPFO and ESIC for portable benefits.
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Question from the official UPSC Civil Services (Main) Examination 2024 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.