UPSC Mains 2024 GS3 Q11: model answer
Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard?
What the question wants
The four codes, their pros and cons, and implementation status.
How to structure it
Intro: 29 laws merged into four codes. Body: (1) the four codes; (2) merits for workers and business; (3) demerits and union concerns; (4) progress of rules and notification. Conclusion: implement with social dialogue.
- 1(1) the four codes
- 2(2) merits for workers and business
- 3(3) demerits and union concerns
- 4(4) progress of rules and notification
Model answer
Based on the Second National Commission on Labour (2002), 29 central labour laws were merged into four codes in 2019–20.
The codes
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
Merits
- Simpler compliance: single registration, licence and return.
- Universal minimum wage and a national floor wage.
- Social security for gig and platform workers for the first time.
- Fixed-term employment with equal benefits.
- Inspector-cum-facilitator; decriminalisation of minor offences.
- Women allowed in night shifts with safeguards.
Demerits
- Lay-off and closure need permission only in firms with 300+ workers (earlier 100); unions fear hire-and-fire.
- 60 days' strike notice in all establishments restricts the right to strike.
- Social security for informal workers depends on schemes not yet funded.
- Passed with little debate; trade unions opposed.
- Labour is in the Concurrent List, so State rules vary.
Progress
- Most States and UTs pre-published draft rules.
- e-Shram portal registered over 30 crore unorganised workers.
- The Union government brought all four codes into force on 21 November 2025.
The codes can formalise India's workforce if flexibility for firms is matched by real security for workers.
Keywords, cases and data to drop in
29 laws national floor wage gig workers 300 threshold e-Shram
Where most answers lose marks
- Not naming the four codes.
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Question text as printed in the official UPSC question paper: https://www.upsc.gov.in/sites/default/files/QP_CSM_2024_GenStud_III_03102024.pdf The model answer is original Battle IAS work; use it to learn structure, not to memorise.