Merchants’ Chamber of Commerce & Industry organised MCCI Knowledge Series: Session on New Labour Code 2025, Today at the Park Hotel.
The Knowledge Series was addressed by Shri Kshitij Jain, Deputy Chief Labour Commissioner (Central), Kolkata, Ministry of Labour & Employment, Govt. of India; Shri Arvind Baheti, Executive Director, Khaitan & Co., and Prof. Vaneeta Patnaik, Associate Professor (Law), The West Bengal National University of Juridical Sciences.
Shri Kshitij Jain, Deputy Chief Labour Commissioner (Central), Kolkata, Ministry of Labour & Employment, Govt. of India in his addressed mentioned that earlier, there were too many acts for wages, Industrial relations, OSH, Social security and each separate acts have different definition for wages, worker/workmen, appropriate govt create confusion. For India to be a hub of manufacturer and competitive with external world, the Government needs to evolve, recreate, redesign.
He highlighted that the Industrial Relations (IR) Code, 2020, in India brings major changes by the Common definition of appropriate govt, wages, workers, Concept of National floor wages, Fixed term employment defined, first-time clarity on recognition of trade unions, Concept of Negotiating council and Standing order rationalized applicable for industrial establishments>300.
Shri Jain said that India’s Occupational Safety, Health, and Working Conditions (OSH) Code introduces major changes, including key labor reforms that fix responsibilities on article manufacturers, designers, and suppliers for safety. A National Occupational Safety & Health Advisory Board is proposed. Establishments with more than 500 workers must provide ambulances; more than 250 workers need a Welfare Officer. Workers can’t work more than 6 days/week. A Medical Officer will assess conditions, and women can work night shifts with consent. Experience certificates are now mandatory.
He lastly highlighted that
- The definition of wages changed; wages include basic, DA, and retaining allowance, and also include any perks that exceed 50 percent
- Equal wages for every gender
- Working journalists are incorporated in the definition of workers
- Prohibition of discrimination on grounds of gender while recruiting any employee for the same or similar nature of work
- National Level floor wages
- Wages of an employee who works for less than a normal working day
Shri Arvind Baheti, Executive Director, Khaitan & Co., in his address, mentioned that most labour and employment laws in India are framed by the Central Government and implemented by the respective state governments. However, if there is any conflict between the Central and State laws, Central Laws prevail over the state laws under Article 254 of the India Constitution. However, there is an exception to it.
He explained that Standardized timelines for wage disbursement across all establishments, same day for daily wages, last working day for weekly wages, within two working days for fortnightly wages, and by the 7th day of the succeeding month for monthly wages, replacing the Payment of Wages Act, which prescribed 7 days for establishments with fewer than 1,000 employees and 10 days for larger establishments.
Shri Baheti also pointed out specified exclusions capped at 50% of total remuneration (excluding amount towards gratuity and retrenchment compensation/benefit). He further added that the Central Government will prescribe a national floor wage as the baseline. The appropriate government must fix the minimum wage above the central floor wage, ensuring no wage falls below the prescribed baseline. That exceeds the number of hours constituting the normal working day. Workers to be paid twice the prescribed wage rate.
He also mentioned that Workers are now entitled to one day of leave for every 20 days of work if they have worked for more than 180 days in that establishment. Workers are entitled, on demand, to encash their leave at the end of the Calendar year.
Prof. Vaneeta Patnaik, Associate Professor (Law), The West Bengal National University of Juridical Sciences, in her address, mentioned that the private sector will likely fall under the purview of SG except where CG has an SH of 51% or more. Single registration under OSH Code (other than SS Code) – registrations already obtained under any central law will be deemed to be a registration under OSH, and existing licenses will continue to be valid. Employment of women during night hours depends on consent and compliance with safety conditions and working hours.
For contract labour, the principal employer is to be responsible for compliance and licences.
She further explained that Retrenchment now has a specific exclusion on grounds of termination of service of a worker on completion of tenure of fixed term employment, and every industrial establishment with 20 or more workers should constitute a GRC.
Shri Munish Jhajharia, Senior Vice President, MCCI, in his Welcome address, said that Labour laws play a crucial role in shaping the relationship between employers and employees. The objectives of the Codes were not only to simplify interactions between employers and employees but also to create a future-ready workforce aligned with the aspirations of a modern, high-income Indian economy where workers’ welfare, security, and dignity remain at the heart of growth.
He added that the New Labour Code 2025 represents a significant step in this. If implemented effectively, it would protect workers’ rights, deepen social security, support employers, and contribute to the overall development of the nation.
He said, “For the evolution of Viksit Bharat, it is important to bring in the labour reforms that have been planned, to strengthen the sectors critical to economic growth.”
The Session was concluded with a hearty Vote of Thanks proposed by Shri Anirudh Jhunjhunwala, Vice President, MCCI.
