By Dr. Gyan Pathak
Though the Union Government led by PM Narendra Modi has officially put on hold the implementation of the four controversial labour codes due to stiff resistance from the joint platform of the 10 Central Trade Unions, many provisions of the codes are being implemented across the country through backdoors by changing the existing laws in operation. The latest example has come just four days ago when the BJP led government in Gujarat has got a bill passed in the state assembly on Wednesday, September 10, 2025.
Gujarat Assembly passed the bill to amend the Factories Act, 1948, providing for increasing the daily working hours to 12 with a cap of 48 hours in a week. The legislation has also put the condition of written consent from a worker in this regard. The legislation will replace an ordinance that was promulgated in July this year. Workers will be entitled for two days paid leave in a week, overtime wages at twice the ordinary rate, and raises the quarterly cap on overtime hours from the existing 75 to 125 hours. Women will be allowed to work in night shifts with her written consent and with other 15 conditions.
Maharashtra government has also recently approved the latest amendment of labour laws to increase daily working hours in private sector from current nine hours to 10 hours, provided that the employer givers overtime compensation for the extra hour.
So far 12 states including Assam, Himachal Pradesh, Madhya Pradesh, Odisha, Uttarakhand, Uttar Pradesh and Karnataka have allowed increase in working hours.
Formal situation on implementation of the four controversial labour codes – the Code on Wages (2019), Industrial Relations Code (2020), Occupational Safety, Health and Working Conditions Code (2020), and the Code on Social Security (2020) – is that they have been put on hold. Official narrative is that the Centre is waiting for all states to frame and notify rules, since labour is a concurrent subject.
Nevertheless, not only working hours, but many other provisions are being implemented on piecemeal basis through amendments in existing rules, circulars, and administrative decision.
Centre has already amended the Standing Orders under the Industrial Employment Act, permitting fixed-term employment across sectors. It is being widely used in both public and private sectors, even though Industrial Relations code is not “notified”. Central government departments and CPSEs are hiring workers on fixed-term contracts. This provision was directly lifted into IR Code, so it is being implemented without waiting for the Code’s notification. As for dispute settlement, Union Ministry of labour has pushed companies to adopt conciliation via online mechanisms under e-Shram and Shram Suvidha portals, bypassing the need for “Works Committees” under the existing Industrial Disputes Act.
The new definition of “wages” in the Code on Wages, which impacts PF, gratuity, bonus, and leave encashment, has been circulated as guidelines for employers. Many companies have already restructured salary components limiting allowances to less than or equal to 50 per cent in anticipation, effectively implementing the provision without the code’s formal enforcement. Many CPSEs, such as NTPC, ONGC, BHEL) have already aligned their pay structures accordingly.
Gig and platform workers are supposed to be brought under the Social Security Code. The government has been rolling out e-Shram portal, Aadhaar based registration, and pilot schemes – laying the architecture of the Code without officially invoking it. The Centre has begun linking of ESIC, EPFO, and PM-SYM schemes under the National Career Service and e-Shram databases. These integration are meant to be part of the Social Security Code framework, but they are already in practice.
Certain provision like common licensing for contractors and ease-of-compliance measures have been issued through amendments in existing labour laws, effectively diluting inspection and regulation systems in the line of provisions of the Occupational Safety and Working Conditions Code (OSHWC). Union Ministry of Labour has integrated licensing into the Shram Suvidha Portal and issued guidelines for “common registrations and returns” across factories, contract labour, and inter-state migrant workers. This is like OSHWC code’s “one license – one return – one registration” system, which is already operational for central establishments. The randomized inspection scheme under the Shram Suvidha Portal has already replaced surprise inspections, which is one of the key deregulatory mechanisms of the OSHWC.
Governments have been doing these because of political sensitivity on the labour codes. Openly implementing the codes may spark nationwide protests by CTUs and workers. Big industries are demanding uniform, flexible labour rules. Provisions are being implemented under legal cover by passing and amending laws and rules, issuing notifications, and encouraging voluntary compliance. It is nothing but soft implementation of the provisions of the codes before their formal notification. Workers’ rights are thus being weakened silently, without democratic debate or public announcement. Employers are cherry-picking provisions favourable to them, while worker-protective parts are delayed. Codes are technically not in force, but their spirit of mostly pro-employer parts is already active.
As for the states are concerned, the BJP or NDA ruled states are doing the same thing while other opposition ruled states are also implementing them under Corporate’s pressure or to attract investments.
Uttar Pradesh, Gujarat, Karnataka, Haryana and Madhya Pradesh have adopted the new “wage” definition with 50 per cent cap on allowances in stat PSUs and government contracts. Contractors are instructed to calculate PF, gratuity and bonus on basic+DA inline with the Code’s definition. Rajasthan has issued orders aligning state minimum wages with the draft floor wage approach of the Code on Wages.
As for IR Code, Uttar Pradesh and Madhya Pradesh have suspended in 2020 the most provisions of the Industrial Disputes Act for 1000+ days, allowing retrenchment, lay-offs, and closure without government approval for 300+ workers – exactly what IR Code provides. Gujarat allowed industries to retrench workers more freely and increased the threshold for standing orders from 100 to 300 workers, mirroring the IR Code. Haryana permits fixed-term employment contracts in all sectors – already applying IR Code provision.
Madhya Pradesh and Uttar Pradesh allowed longer working hours up to 12 hours a day, and 72 hours a week during COVID-19 through state notifications, citing “flexibility”. These limits are in line with OSHWC framework for “flexible work hours”. Gujarat introduced “common registration and licensing” for factories and contractors through its sate labour portal, in line with OSHWC. Tamil Nadu issued rules consolidating licenses under the Factories Act and Contract Labour Act into a single window – echoing OSHWC provisions.
Jharkhand and Odisha are actively promoting e-Shram registration drives, lining state welfare boards (construction workers’ welfare, bidi workers, etc) with the central database. The state-level initiatives are effectively the implementation of the Social Security Code. Kerala integrated state social security schemes (welfare boards for head-load workers, autorickshaw drivers, etc) with e-Shram and Aadhaar linked benefits. Haryana and Karnataka are using e-Shram linked databases to deliver welfare benefits to gig and platform workers, especially delivery workers.
Emerging pattern in the states is that pro-business reforms, such as hire-and-fire, fixed-term jobs, extended working hours, relaxed inspections, are implemented faster and more aggressively. Worker-protective measures, such as social security extension, minimum floor wage etc are being implemented on piecemeal basis and often limited to e-Shram enrolments. Most BJP ruled states are in the frontline of the backdoor implementation of the codes, while opposition ruled states are focusing on integrating their social welfare schemes with the central portal. (IPA Service)
