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The consolidation of 29 central labour statutes into four Labour Codes, the Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020, and the Occupational Safety, Health and Working Conditions Code 2020, marks a paradigmatic shift in India’s labour regulation architecture, expressly framed as a lever for enhancing Ease of Doing Business while expanding social protection. This paper interrogates whether the codes, in design and likely operation, achieve a defensible balance between regulatory simplification and economic flexibility on the one hand, and workers’ rights grounded in the Indian Constitution and International Labour Organization (ILO) standards on the other. Employing a doctrinal and policy analytical methodology, it compares key provisions of the new codes with the pre existing statutory regime, analyses their interaction with constitutional jurisprudence on the right to livelihood and dignified work, and situates them within the broader discourse on labour market flexibility and investment promotion. The analysis highlights clear gains in terms of harmonised definitions, digitised single window compliance and graded flexibility for enterprises, particularly MSMEs, but also identifies areas of concern: higher thresholds that exclude large segments of workers from job security and safety protections, stringent constraints on the right to strike, and social security promises that are heavily scheme dependent and weakly justiciable. The paper concludes that the labour codes presently tilt the balance towards Ease of Doing Business, and recommends targeted legislative, administrative and judicial measures especially around thresholds, enforcement capacity, social security design and collective bargaining rights to realign the reforms with constitutional commitments to social justice and decent work.
Keywords:
Labour code, Ease of doing business, International Labour Organization, Constitutional jurisprudence, Constitutional commitments to social justice.
Cite Article:
"Labour Codes 2020 and Ease of Doing Business: Balancing Economic Growth and Workers' Rights", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.11, Issue 6, page no.a239-a256, June-2026, Available :http://www.ijrti.org/papers/IJRTI2606028.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator