**Subject:** Economy The recent consolidation of **29 central labour laws** into **four Labour Codes** marks a significant milestone in India's labour market reforms, aiming to balance worker welfare with ease of doing business. ## Merits - **Simplification & certainty**: 29 central laws compressed into four, cutting ~1,200 sections to 480 and easing compliance for 63 million enterprises. - **Ease of doing business**: Single registration, single annual return, five-year licence and algorithm-based inspections curb “inspector-raj.” - **Universal wage floor** prevents any state from setting minimum wages below a centrally fixed level, aiding informal and farm workers. - **Wider social security**: Gig and platform workers to receive provident-fund, health and accident cover via a central fund. - **Flexibility with safeguards**: Lay-off threshold raised from 100 to 300 employees while mandating a reskilling fund for retrenched staff. - **Gender & safety focus**: Crèches for establishments with ≥50 workers, night-shift safeguards for women, and mandatory safety gear for contract labour. ## Demerits - **Job security dilution** from higher lay-off threshold and easier fixed-term contracts. - **Strikes harder**: 14-day notice, 60-day cooling-off and, in some cases, 75% support required. - **Vague gig-worker coverage**: Contribution rates and benefit design left to future rules. - **Broad delegated legislation** risks divergent state standards. - **Inspector-facilitator dual role** may soften enforcement. - **Unpaid care work excluded**, overlooking a large share of women’s labour. ## Progress So Far 1. **Rule-making**: Centre finalised rules, but still all states yet to notified theirs, causing uneven readiness. 2. **Digital infrastructure**: Shram Suvidha 2.0 for unified registration piloted; National Database for Unorganised Workers tops 290 million entries. 3. **Timeline**: Phased enforcement now eyed for Q4 FY 2025-26, beginning with the Wage Code. 4. **Industry preparedness**: Large firms have adjusted pay structures for the new “wage” definition; MSMEs seek clarity on overtime and penalties. 5. **Stakeholder pushback**: Ten central trade unions plan a convention and possible strike; some states explore independent gig-worker boards. The success of four codes hinges on uniform rule notification, effective tripartite oversight and swift activation of gig-worker funds and digital inspection systems; until then, the reforms remain legislated but not lived.