Labor reforms in India have been a long-pending demand of
foreign investors, a majority of which consider the country's
labor and employment laws responsible for limiting investment
interest by forcing private employers to be sub-scale and
simultaneously creating a plethora of compliances and regulatory
barriers. In this context, the consolidation of major central labor
laws relating to wages, social security, industrial relations, and
occupational safety and health, is indeed a welcome step that
underscores the Government's attempt to boost ease of doing
business and update domestic laws in order to bring them in line
with modern best practices.
In order to simplify and consolidate the labor laws of India,
the Government has introduced 4 labor codes
(Codes) which subsume 29 labor laws. A similar
consolidation of central labor laws in 4 broad categories was
earlier recommended by the Second National Commission on Labor in
2002, which led to the Ministry of Labor and
