Labour Codes Enable Easy Firing, Says AITUC’s Kaur

By Aditya Nagar | November 28, 2025

Now, most Indian factories will find it easy to lay off workers with the introduction of new labour codes, says AITUC General Secretary Amarjeet Kaur.

According to her, 60 -70% of industrial units do not require government permission to fire employees. Now this has raised doubts about the new rules, which seem employee-friendly.

Only Factories With 300 Employees Fall Under IRC Rules: Amarjeet Kaur (AITUC)

Explaining the Industrial Relations Code (IRC), Kaur said it applies to factories with a workforce of 300 or more.

In India, many factories have fewer workers. Hence, they can lay off staff without prior approval, provided they serve the required notice period and pay compensation.

Previously, the factories with 100 workers had to seek permission.

Kaur also highlighted the issues in the Occupational Safety, Health and Working Conditions (OSH) Code, 2020.

The new meaning of ‘factory’ has raised the minimum worker threshold, suggesting that smaller units need not adhere to basic safety rules.

Raised Thresholds Let Many Factories Skip Key Labour Rules

The new labour laws now apply to power-operated factories with at least 20 workers, more than the previous requirement of 10.

Whereas, factories without power will double the number of workers to 40 from 20 (earlier).

After a unit becomes a registered factory, it must obtain a license and comply with overtime, health, drinking water, sanitation, and on-time payment.

But with increased thresholds, many would bypass these regulations, affecting lakhs of workers, Kaur said.

Amarjeet Kaur also stated that there will be different safety precautions for workers in diverse sectors. However, the sector-specific safety measures are unspecified in the new codes.

She also pointed out that the key protections under the ISMW (Inter-State Migrant Workmen) Act, 1979, are not completely included in the OSH Code.

Under the previous law, migrant workers received a Displacement Allowance equal to 50% monthly wages at the time of hiring. This is not included in the new code.

The old law required contractors to provide migrant workers with a passbook with all job details. In contrast, the OSH Code only required basic records and appointment letters.

On trade unions, Kaur said the new recognition rules are stricter and unjustified. Earlier, it required only seven workers to form a union. In the current scenario, only 10% of all workers or at least 100 workers, are needed to create a union.

Kaur said unions can now be derecognised easily. Regarding negotiation rights, it needs 51% worker support; otherwise, the Negotiating Council will form various union representatives.

Regarding minimum wages, she said the committee should decide the salaries, including representatives from multiple unions. But with most units operating without government permission, who will ensure the workers are paid on time?

FAQs

Q: Are women allowed to work at night?

A: Yes, women are allowed at night with certain conditions to be met.

Q: What labour code is the issue?

A: The labour code, which has become the burning issue, is the Industrial Relations Code (IRC) with related provisions in the Occupational Safety, Health, and Working Conditions (OSH) Code, 2020.

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Labour Codes Enable Easy Firing, Says AITUC’s Kaur

Only Factories With 300 Employees Fall Under IRC Rules: Amarjeet Kaur (AITUC)

Raised Thresholds Let Many Factories Skip Key Labour Rules

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