Climbing the stairs of a housing society in Agra, Ramwati looked unusually tired today. In her hands were a broom and a mop, but on her mind sat a heavier load, the uncertainty surrounding the government’s newly implemented labour codes. Only the night before, news anchors had described these changes as “historic reforms,” promising increased jobs, simplified wage systems, and a modernised labour market. Social media threads echoed this optimism.

Yet for Ramwati, a domestic worker with no formal contract, the details felt distant and daunting. Would the new overtime rules truly benefit her, or add to her burdens? With fewer holidays potentially on the horizon, and her 22-year-old son Anil unemployed for months, the promise of enhanced job security rang hollow. Neighbours spoke of guarantees under the codes, but Ramwati wondered if her informal role would even qualify.

Read in Hindi: नए लेबर कोड, सुधार का ढोंग या मजदूरों के अधिकारों पर हमला!

She is far from alone. India’s workforce totals around 640 million, with 90-93 per cent, roughly 570-580 million, in the informal sector. Construction labourers, farmhands, street vendors, delivery riders, and gig workers form this vast majority, often earning ₹200-₹300 daily without insurance, paid leave, or illness support. Women like Ramwati bear dual loads: unpaid home duties and precarious paid work. While the codes aim to extend protections to many in this group, critics argue that implementation gaps could leave millions, including nearly 50 million domestic workers, on the margins.

On 21 November, the government notified the four labour codes, the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020), effective immediately, consolidating 29 older laws.

The Ministry of Labour and Employment hailed this as a “historic decision” to simplify compliance, boost formalisation, and align with global standards, noting social security coverage has risen from 19 per cent of the workforce in 2015 to over 64 per cent in 2025.

Key provisions include a national floor wage, with states setting minima, mandatory appointment letters, digital wage payments, social security for gig and platform workers, free annual health check-ups for those over 40, and women’s eligibility for night shifts with safeguards.

Labour Minister Mansukh Mandaviya emphasised that these reforms “empower workers while easing business processes,” potentially creating jobs in manufacturing and services. Economists like Arvind Panagariya have praised the codes as the “mother of all reforms,” arguing they dismantle rigid, outdated rules that stifled growth.

However, beneath this narrative of progress, unions and workers’ advocates raise valid concerns about uneven impacts, particularly for the informal majority.

Definitions of “worker” vary across codes, potentially excluding those earning above ₹15,000-₹18,000 monthly from key protections.

Fixed-term contracts, now more flexible, could erode permanent employment stability, though proponents say they equalise benefits like gratuity after one year.

The national minimum wage lacks a fixed floor, risking state-level inconsistencies and exploitation.

Under the Industrial Relations Code, the threshold for government approval before retrenchment, layoffs, or closures rises from 100 to 300 workers, a change that states can further adjust.

While the government views this as promoting investment and jobs, unions like the All India Trade Union Congress and Indian National Trade Union Congress call it a “hire-and-fire” easing that weakens bargaining power. AITUC’s Amarjeet Kaur warned it “snatches workers’ rights, including fixed-term job protections.”

The OSHWC Code exempts smaller establishments, under 10-20 workers, depending on the sector, from some safety norms, though it mandates committees in larger units and treats commute accidents as work-related in certain cases.

For high-risk areas like construction and mining, where accidents are common, this could mean diluted oversight, with inspectors now termed “facilitators.”

Domestic workers, notionally covered under the codes for wages and social security, remain practically sidelined without specific enforcement mechanisms or dedicated legislation, as noted by the Supreme Court in early 2025. Gig workers gain promised benefits like insurance, but unions question the real-world rollout. These tensions trace back to 2019-2020 consultations, where the Indian Labour Conference flagged potential harms, many unaddressed.

Dissent erupted in July this year nationwide strike involving over 250 million workers protesting ‘anti-worker’ policies. Another mobilisation is set for November 26, uniting trade unions and farmers against the codes and related policies.

For MSMEs, the economy’s backbone, the 1-2 per cent contributions to ESI and PF add costs, despite eased compliance like single registrations. Larger firms may gain from flexibility, but informal and migrant workers, especially women, risk incomplete safeguards.

In my view, the codes offer a foundation for a more inclusive labour market, with portability of benefits and decriminalised minor offences as steps forward. Yet their legacy hinges on robust implementation: clear rules, state alignment within 45 days, and inclusive dialogue. Without addressing union concerns, they may deepen divides rather than heal them.

People like Ramwati, Anil, and daily wage earner Natthu Singh cling to cautious hope. Local leaders promise security, and for many, that sliver of optimism is a lifeline. Whether it endures will test if these reforms truly prioritise the workforce’s dignity over expediency.