Ten large Indian trade unions have condemned the government’s rollout of new labour codes, the biggest such overhaul in decades, as a “deceptive fraud” against workers.
The unions demanded in a statement late on Friday that the laws be withdrawn ahead of nationwide protests they plan to hold on Wednesday.
The Central government implemented the four labour codes, approved by Parliament five years ago, as it seeks to simplify work rules, some dating to British colonial rule, and liberalise conditions for investment. It says the changes improve worker protections. While the new rules offer social security and minimum-wage benefits, they also allow companies to hire and fire workers more easily.
Unions have strongly opposed the changes, organising multiple nationwide protests over the past five years. The government has held over a dozen consultations with unions since June 2024, an internal ministry document on the labour codes shows.
The rules allow longer factory shifts and night work for women, while raising the threshold for firms that need prior approval for layoffs to 300 workers from 100, giving companies greater flexibility in workforce management. Businesses have long criticised India’s work rules as a drag on manufacturing, which contributes less than a fifth to the country’s nearly $4 trillion economy.
But the Association of Indian Entrepreneurs expressed concern that the new rules would significantly increase operating costs for small and midsize enterprises and disrupt business continuity across key sectors. It asked the government for transitional support and flexible implementation mechanisms.
Not all unions are opposing the overhaul. The right-wing Bharatiya Majdoor Sangh, aligned with the BJP, called on states to implement the new codes after consultations on some of them. Indian states are expected to craft rules aligning with the new federal codes covering wages, industrial relations, social security and occupational safety.
Also read: Labour code will boost exports, bring uniformity in wages
Follow us
