Following the enactment of the four new labour codes – the Industrial Relations Code, 2020 (IRC); Code on Social Security Act, 2020 (CSS); Occupational Safety, Health and Working Conditions Code, 2020; and Code on Wages, 2019 – India’s labour laws, long characterised by a fragmented framework of Central and State legislation, have undergone significant structural consolidation and reform.
These labour law enactments will provide both increased flexibility in the Indian labour market and the ability for employers and employees to create formal employment relationships, thereby providing full statutory benefits to employees. In this context, one of the most significant changes involves the statutory recognition of Fixed-Term Employees (FTEs), along with the relaxation of the eligibility criteria for gratuities under the CSS as well as the expansion of the definition of ’employer’ within the IRC framework to include contractors. These changes inevitably raise significant questions
