Migrant and contract workers face wage theft and occupational hazards in India. Assess how far the new Labour Codes address these vulnerabilities.
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Migrant and contract workers often lose their final month's pay to contractors. They also operate hazardous machinery without training or protective gear. The four Labour Codes came into force on 21 November 2025 [1]. They close several of these legal gaps, but weak wage norms and coverage thresholds limit how much they help.
How the Codes tackle wage theft
- Universal minimum wage: the Code on Wages, 2019 gives minimum-wage and timely-payment protection to all employees. Earlier, timely-payment rules applied only up to a wage ceiling [2].
- Deadlines for payment: monthly wages are due within seven days of the next month, and full dues within two working days of leaving a job. This directly targets withheld final-month pay [2].
- Floor wage (Section 9): the Centre fixes a floor wage, and no state minimum wage can fall below it [3].
- Proof of employment: appointment letters are mandatory, which gives informal workers evidence they can use to claim dues [4].
How the Codes tackle occupational hazards
- OSH Code, 2020: employers must provide a hazard-free workplace and report fatal or serious accidents. Workers in notified establishments get free annual health check-ups, and contractors must hold licences [5].
- Migrant-specific protections: employers must pay inter-state migrants a yearly journey allowance to their native place [6]. Social security now extends to inter-state migrant workers [4].
Where the Codes fall short
- Floor wage without a formula: PRS notes the draft rules gave no method for fixing the floor wage and made its revision optional [7]. The final 2026 Central Rules still give no detailed norms [8].
- The 'unskilled' trap: Section 6(6) creates four skill categories, which keeps uncertified migrants in the lowest pay band [3][7].
- Coverage gaps: the OSH Code applies only to establishments with 10 or more workers. Governments can also exempt new factories and suspend the Code during emergencies [5]. Small informal workplaces, where many migrants work, fall outside it.
- Enforcement: the rights exist on paper, but states must still provide enough inspectors to enforce them.
The Codes deal with both wage theft and workplace danger, so they are a real step forward. How much they help will depend on putting them into practice. Three steps would help: a floor wage with a clear formula that is revised regularly, safety duties linked to how dangerous the work is rather than to the worker's skill grade, and portable entitlements through e-Shram. Together these would make the Directive Principles in Articles 42 and 43 (humane working conditions and a living wage) and SDG 8 (decent work) real for India's most vulnerable workers.
Sources
- 1Government Makes the Four Labour Codes Effective to Simplify and Streamline Labour Laws — PIB, 21 Nov 2025codes effective 21 November 2025
- 2PIB Factsheet: Code on Wages — timely payment of wagesuniversal timely payment, pay deadlines, settlement within two working days
- 3Code on Wages, 2019 Safeguards Workers, Induces Growth, Empowers Women — PIB backgrounderSection 9 floor wage; Section 6(6) skill categories
- 4PIB release on provisions for workers under the Labour Codes (via Ministry of Labour & Employment)appointment letters; social security for inter-state migrant workers
- 5PRS Bill Summary: Occupational Safety, Health and Working Conditions Code, 2020hazard-free workplace, accident reporting, annual health check-ups, contractor licensing, 10-worker threshold, exemptions
- 6Occupational Safety, Health and Working Conditions Code, 2020 — text (PRS)journey allowance for inter-state migrant workers
- 7PRS: Draft Rules under Code on Wages, 2019no floor-wage method, optional revision, four skill categories
- 8PRS Rules Review: Code on Wages (Central) Rules, 2026final rules lack detailed floor-wage norms