Why India’s New Labour Codes Are Still Not Implemented

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Why India’s New Labour Codes Are Still Not Implemented

The Four Labour Codes, though passed by Parliament in 2019 and 2020, are still not implemented across India as of mid-2025. The delay is due to a combination of administrative, legal, political, and practical reasons.

Here’s a detailed explanation: 


🧩 Why India’s New Labour Codes Are Still Not Implemented

🇮🇳 4 Labour Codes passed in 2019–2020. But still on hold in 2025.

⚖️ 1. Labour is a Concurrent Subject

  • 📜 Parliament passed the Codes

  • 🏛 States must frame & notify own rules

  • 🚦Implementation only after Centre + States notify rules

⏳ 2. Uneven State Readiness

StateDraft RulesFinal Notification
UP, MP, Gujarat, Karnataka✅ Done❌ Pending
Tamil Nadu, Kerala, Maharashtra🕗 In progress❌ Not yet
Several others❌ Not started❌ Not yet

🛑 No simultaneous rollout yet

🧑‍🏭 3. Trade Union Opposition

  • ⛔ Restrictions on strikes

  • 🔄 Hire-and-fire under IR Code

  • 🚩 Nationwide protests & lobbying

🏭 4. Employer & Industry Concerns

  • 💰 Higher wage burden

  • 🧾 Compliance load (ESI, EPF for all)

  • 🧮 Confusion over implementation process

🧠 5. Pending IT Infrastructure

  • 🔄 National Database for unorganized workers

  • 🧾 Unified UAN system for gig, platform workers

  • ⚙️ Labour ministry tech back-end still incomplete

🗳️ 6. Elections & Political Sensitivity

  • 2024 General Elections + state polls

  • 🗯️ Fear of backlash from:

    • Small businesses

    • Workers

    • Gig economy

😷 7. Covid Delays

  • 2020–2022: Administrative focus shifted to relief

  • 🧯 Labour Codes were not a priority during pandemic

✅ Centre’s Stand

“All four codes will be implemented simultaneously across India.”
– Ministry of Labour & Employment

🕰️ Status as of July 2025

CodeCentral RulesMost States Ready?Implemented?
Wage Code, 2019✅ Yes❌ No❌ No
Social Security Code, 2020✅ Yes❌ No❌ No
OSH Code, 2020✅ Yes❌ No❌ No
Industrial Relations Code✅ Yes❌ No❌ No

📌 Summary:

✔️ Passed
⚙️ Framework ready
🛑 Not yet implemented due to state delays, political sensitivity, stakeholder resistance, and pending tech systems.

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