Hello Friends. Friends, for the last 5 years you have been hearing about the four labour courts, about which there was a lot of discussion, it was said that it would have a big impact on the Indian economy. Finally it has been implemented yesterday. You can see the news. Government implements four labor courts replacing 29 old laws. Let us understand this in a little detail as to what these four new labour courts are? What were the 29 old Los? Why was it replaced ? And what impact will this have on India? What will be the impact on employers? What will happen to the employees? I will tell you all that in detail. Let's move ahead. But before that let me tell you all that if you are preparing for UPSC 2027 then there is a big slash in the price and you can see that if you join the batch of 26th November then you are getting extra discount for the batch of 2027 in which preparation for prelims mains interview everything is done. Its link is given in the comment section. Use code AnkitLive for maximum discount. And this is the phone number. You can call here. My team will guide you well. Let's get started. First of all let us see what exactly happened. As I was telling you yesterday, the Government of India decided that there are four Consolidated Labour Courts, let me show you them. You can see this in the labour reform bills like the wage code. Things related to industrial relations happened. Social Security is done. Industrial Safety and Welfare happened. What happened before this was that there were about 29 labor losses which were very complex. There were issues. I will tell you. So he was replaced. After removing that, only these four labour courts will remain here. So it is being said that this is India's biggest labour law overall since independence where the effort is to simplify the regulations. The welfare of workers should be improved and Ease of Doing Business should be introduced so that more investment takes place in the country. There should be more increase in GDP here. Well, the first question that arises here is why did it need reform? Look, the old labour laws of India were very fragmented. Couldn't tell. Some things were in one lodge and others in another. Meaning there was a lot of confusion. They had become outdated. Just think about 1930 and 1950. Think about the time of the British and how much overlap there used to be. Now suppose each law related to labour says something else. The second law says something else. The matter goes to court. Even the court cannot understand what to do? Because different things are written in the two laws. So many issues arose because of this. Apart from this, businesses had to face a lot of compliance burden. Just think, if things are complex, there is complexity in the law itself, then the labour officer who comes here to raid and does the checking, he gets the benefit, right? That is why there is more corruption and such things here. So there were 29 different central laws and just imagine, the states had their own separate laws. Due to which all these issues arose. Apart from this, think about the informal gig workers platform sector like today, who would have thought 70 years ago that there would be things like Swigg and your Zomato, there would be companies, there would be gig workers here, so those kind of laborers, those kind of workers have not been given recognition. So this new code of yours has come and has been implemented, they will get recognition in it. So, India's aim is to modernize the labour governance so that the evolving forms of employment and new employment opportunities can be taken care of. Now the era of AI has arrived. So you will attract global investment only when you bring changes in it. So finally it has been implemented. Now what are these four? Let me tell you. The first is Code on Wedges. This bill came in 2019. Code on wedges. Now what things are covered in this? Obviously, from its name you must be understanding it as veggies. Meaning, what will be the minimum wage in the country? In different states, some states may have different minimum wages. But yes, the thing in this is that the Central Government will fix a minimum wage. No state will go lower than that. Suppose the Central Government says ₹1000 per day. Ok? So no state can go less than ₹1000. Yes, if Maharashtra feels that it has to do 1500 then it can do 1500. But the minimum will remain that much. So there are things like a minimum wage in it. How will the payment of wages be made? When will it happen? When and how will the bonus be given regarding equal remuneration. So these are all things that the Code on Wages covers. What are the features in it? Like I told you about the National Floor Minimum Wage, no state can go lower than that minimum wage. Apart from this, timely wage payment no unauthorized deduction means timely wage payment means that you should get your salary by the 7th of every month. Veg should be available. There should be no delay in that. Then there should not be any unauthorized deduction where the company says that we are deducting it. Not all this. Apart from this, here it is applicable to both organized and unorganized sectors and its coverage has been widened further. Has been standardized. An attempt has been made to further standardize the definition of veg. If you look at the old laws, there is Minimum Wages Act, Payment of Wages Act 1936, Payment of Bonus Act. All these were merged into a single code on wages. Then apart from this, the second bill is Industrial Relations Code 2020. So if you look inside this, trade union, industrial dispute, strike, lockouts, lay off, retirement, closure, all these things have been brought in the Industrial Relations Code. What changes have happened in it now ? First of all, establishments with 2, 300 workers do not have to take permission from the government for layoff. Till now what used to happen was that if your company has up to 100 employees. Ok? So you did not have to take permission from the government. If you are firing people on a large scale, and suppose if 150 workers are working for you and you fire 50 workers in one go, then you would have to take permission from the government. You could n't do that. Many issues used to come up. There were a lot of problems. But now it has been increased to 300. Meaning, it will give benefit to the employers that if there are up to 300 employees in your company, then you can withdraw them. There is no need to take permission from the government. Then the second one, fixed term employment, was formally recognized. Look, what is very important is that there are many such works in which employment is given only to people for a specific period. For example, a particular work was given for 6 months every year for 2 years. So the employment which was a fixed term was not formally recognised. It was not within the law. Due to which many issues were created again. Now it has been recognized. The second definition is who will be a worker? Who will be the employee? Who will be the employer? So this standardized definition was made. Then new rules related to union recognition have been brought here. New rules have been introduced regarding collective bargaining. So all these things have been brought into the Industrial Relations Code. Earlier you can see there were such laws. There were many more laws. Ultimately it was merged and put into this. The third is the Code on Social Security. Look, it is very important in today's date. If there are workers or employees, they are working today. What about when they retire and no longer work? He should take care of social security. So in this, EPFO gratuity maternity benefits for gig platform workers, that is, especially Swiggy and Zomato, which I was talking about, there are many issues here that they are the gig workers, they do not have social security. Companies are paying attention at their own level. But there is no standard rule. Then what will happen to the unorganized welfare sector? So all these things are left in Social Security. Let me tell you the main features in this. For the first time, gig workers are being given legal recognition. Meaning, there are the same Zomato and many other workers who are working on their own at their own level. So they are getting legal recognition for the first time. Social security portability will be allowed here. It means you are in Delhi and suddenly you go to Mumbai to work , go to Bengaluru. So here across states and employers will be able to make it portable. Apart from this, the coverage of unorganized sector workers has been widened so that more workers of the unorganized sector are covered. Apart from this, disability life and maternity benefits have been enhanced. And if you look at the earlier laws, here Provident Fund Act 1952, 1948, Maternity Benefit, Payment of Gratitude Act 197, all these were merged. There were many more laws earlier. Well what's the fourth one here? Occupational Safety, Health and Working Conditions. Obviously, here we should talk about what are the conditions where the worker is working? Safety has been taken care of. So here safety health standards, working conditions, factories, mines, dogs, plantations, shops, contract labour, migrant workers. So you will get to see the coverage of all this inside it. Let me tell you some of its main features. Firstly, the safety norms across the sector have been uniformed. There should be no ambiguity that this is the safety norm in this sector. This is not to be adopted in this. In everything, a particular standard which is safety norms will have to be adopted. Then here in some specified categories, suppose there are some mine workers. Obviously, it can have a huge impact on health. So there should be annual free medical checkup here. It has been made compulsory. Apart from this, women can do night shift. This has also been allowed. But yes, some protective measures will be taken, so according to that, women can also do night shifts. Along with this, simplified licensing for contractors. Meaning a single license can be given for up to 5 years. This was not allowed earlier. Earlier, you had to renew your license every year for seven years. So the contractor faced a lot of difficulties. So now it has been simplified so that it becomes easier to work. Apart from this, if there are any safety violations in any safety related company, then heavy penalties will be imposed there. You can see the earlier laws, here the Factory Act of 1948 became the Mines Act, contract labour became. All these things have been merged. So finally, if we talk, what is the overall benefit for the workers? Firstly, I told you that the minimum wage will be at the national level. Different states can increase the minimum wage further if they wish to do so. Apart from this, you will get timely wage payment. Gig workers were recognized. The coverage of unorganized workers was expanded. Safety conditions, health checkups, all these have been improved. Night shift has been allowed for women. Well, if we talk from the perspective of the employers who are providing the work, then the biggest convenience for them is that earlier there were 29 losses which used to be very difficult for them to check whether everything is fine or not and whether the labour inspector will bother them. So now it has been brought in only four codes. Single registration, single license, this has been brought in many things. The definition has been standardized to reduce litigation and ambiguity. Flexibility has been introduced for layoffs. I told you that if you have up to 300 workers in your company then you will not face any problem. You can fire anyone whenever you want. Apart from this, fixed term employment has been allowed for flexible hiring. Long working hours. Look, it has also been done in this that if you want to get the work done for 12 hours, you can do it. But yes, it is obvious that you will have to make payment accordingly. Now I don't know how it will be implemented because if you look in India, there are many companies against which a lot of complaints are received. Poor guy, whoever is going and working is being made to work continuously. Even when he reaches home, he is still working there. So I don't know, will this extra payment be given for 12 hours or not ? How is it implemented? Criticism and concern are also coming up regarding this. The argument of trade unions is that the flexibility being given to employers will reduce their job security. You are doing the layoff easily. Meaning this will lead to exploitation. Any employer can fire anyone at any time. Permanent hiring will decrease due to fixed term contracts. The employer, the contractor, will hire them here only for a specified period. Then if it needs to be renewed further, it will be done. So permanent hiring will be less than this. The concern of economists is that in the short term, the cost of compliance of all these small forms will increase. There will be losses for small forms. The enforcement infrastructure in our country is very limited. The inspector and the way corruption etc. is going on, he needs to be strengthened a bit. Many states can delay its rules. Look, it is being introduced at the national level but ultimately it depends on the states as to when and how it is implemented. And gig worker organizations have warned that the employers' contribution here is still unclear as to how gig workers will benefit from it. How the benefit was derived has also not been clearly specified yet. What implementation challenges will it face? I told you firstly when and how the state government implements it. Then what is the second thing that the ground level success here is such that this labour force actually benefits here. So let me tell you that it depends on many other things like what is the digital compliance platform like? What is inspector training like? How is the gig platform sector being monitored? How is the state centre coordination ? How is the adaptation at the company level? So overall, if we talk about what impact it can have on India's economy? Look, due to the simplification that has been brought here, India's manufacturing competitiveness can improve. Due to labour clarity here, many foreign companies would like to invest in India. Will bring FDI. Large scale job creation will be possible. Due to social security expansion, the productivity of workers may increase. Due to labour market formalisation, the informality may gradually reduce. Because still in the country, on a large scale, only 10 to 15% is the formal sector. The remaining 80%, you should understand, is the informal sector. Well, before we go here, you can see that I have created this entire table. Here you will be able to see the different codes which are labour laws. So what things related to that are there inside it? You will get all the benefits inside it and this was the entire video, friends, before leaving, I have an interesting question for all of you, can you tell me which colonial committee, that is, which colonial committee was the first in the British time, that is, for the first time, working conditions and wage issues in factories in India were investigated, you have to tell this here and you all know that its correct answer will be available on my Instagram, if you are not there, no problem, you can get its correct answer from Twitter and friends, as I told you, if you want to prepare for UPSC 2027 on Study IQ. This course will be very beneficial for you. In this, preparation is done for everything like prelims, mains, interview. Use this code Ankit for live maximum discount, link is given in the comment section. If you have any doubt, this is the phone number. You can call here. My team will guide you well. Friends, UPSC 2027 Foundation Batch has officially started. 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