Ten of India’s largest trade unions condemned the government’s rollout of new labour codes on Friday, calling the overhaul “a deceptive fraud” against workers. The unions, aligned with parties opposing Prime Minister Narendra Modi, demanded that the laws be repealed and announced plans for nationwide protests on Wednesday in response to the changes.
Modi’s government implemented four labour codes, first approved by parliament five years ago, aimed at simplifying work rules—some dating back to British colonial times—and liberalizing conditions to attract investment. While the government says the reforms improve worker protections through social security and minimum-wage guarantees, critics argue they also make it easier for companies to hire and fire employees.
The new rules allow longer factory shifts and night work for women while raising the threshold for firms that require government approval for layoffs from 100 to 300 employees. The Labour Ministry did not immediately comment on the unions’ demands, though internal documents show over a dozen consultations with unions since June 2024. Businesses have long complained that India’s labour regulations are a drag on manufacturing, which contributes less than a fifth to the nation’s nearly $4 trillion economy.
Despite the government’s push, some business groups, including the Association of Indian Entrepreneurs, warned that the reforms could significantly increase operating costs for small and midsize enterprises and disrupt key sectors. They urged the government to provide transitional support and implement flexible mechanisms. Not all unions oppose the overhaul; the right-wing Bharatiya Majdoor Sangh, aligned with Modi’s party, encouraged states to implement the codes after consultations. Indian states are expected to craft regulations aligning with the new federal codes covering wages, industrial relations, social security, and occupational safety.
The rollout of the labour codes marks the most significant reform of India’s work rules in decades and highlights the tension between efforts to liberalize the economy and the concerns of workers and unions across the country.
