Ten major central trade unions on Friday sharply criticised the Union government’s decision to bring the four long-pending labour codes into force, calling the move “pro-employer”, “undemocratic” and a “deceptive fraud committed against the working people of the nation”.
The unions — INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, LPF and UTUC — issued a joint statement rejecting the reforms and announced a nationwide protest on November 26. They claimed the implementation, effective from November 1, was carried out “unilaterally” and undermines the welfare-state framework that underpinned India’s earlier labour laws.
Their criticism comes as the Centre notified the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020) and the Occupational Safety, Health and Working Conditions Code (2020), replacing 29 existing labour laws in one of the most significant labour reforms since Independence.
Prime Minister Narendra Modi described the codes as “one of the most comprehensive and progressive labour-oriented reforms since Independence”. In a post on X, he said the new regime would strengthen workers’ rights, simplify compliance, support “Nari Shakti and Yuva Shakti”, and create a future-ready framework for job creation and economic growth.
According to the notification, the codes introduce several progressive provisions aimed at widening social protection:
Women may now work night shifts across all sectors, including mining and heavy industries, subject to safety norms and their consent.
Fixed-term employees will receive benefits on par with permanent workers, including leave, medical support and social security.
Gratuity eligibility has been reduced to one year of service.
Crèche facilities will be mandatory for establishments with 50 or more employees.
Gig and platform workers — including delivery agents and ride-hailing partners — have been formally recognised for the first time and brought under the social security net.
Equal pay for equal work has been re-emphasised.
The protesting unions argue that the reforms make it easier for businesses to hire and fire workers, weaken collective bargaining and dilute safeguards around industrial disputes. The Industrial Relations Code, for instance, raises the threshold for prior government approval for layoffs from 100 workers to 300, giving firms greater flexibility in workforce restructuring.
In their statement, the CTUs said the government ignored repeated submissions, including at the pre-budget meetings held on November 13 and November 20. They also recalled earlier strikes — such as the 2020 general strike and the 2025 nationwide action reportedly involving “more than 25 crore workers” — which they say went unheeded.
Calling the move “anti-worker and pro-employer”, the unions accused the Centre of acting “in cahoots with capitalist cronies” and warned that implementing the codes amid high unemployment and rising inflation was akin to “a declaration of war on the working masses”.
They reiterated their 20-Point Workers’ Charter, which sought measures to boost domestic demand, tighter auditing of flagship schemes, restoration of routine audit disclosures to Parliament, wider EPF and ESI coverage, higher minimum pension, improved benefits for scheme workers, and the reversal of decriminalisation of certain labour offences under the Jan Vishwas Act. They also demanded sectoral cesses to fund welfare measures and concrete job-creation initiatives rather than incentive-based industrial schemes.
While businesses have long argued that India’s rigid labour laws constrained manufacturing growth — which still contributes less than one-fifth of the nearly $4 trillion economy — reactions to the new codes are divided.
Several industry groups welcomed the simplification effort, but the Association of Indian Entrepreneurs warned that the overhaul could significantly raise operating costs for small and midsize enterprises and disrupt operations across sectors. It sought transitional support and more flexible implementation timelines.
Not all unions oppose the changes. The Bharatiya Majdoor Sangh, linked to the ruling party, called on states to adopt the codes after further consultations.