India – November 22, 2025: Ten major trade unions in India have strongly condemned the government’s introduction of new labour codes, calling them a “deceptive fraud” against workers. The unions have demanded the withdrawal of the laws ahead of nationwide demonstrations planned for Wednesday, warning that the overhaul could harm workers’ rights while benefiting corporate interests.

Background on India’s Labour Codes

The new labour legislation, rolled out by Prime Minister Narendra Modi’s government on Friday, represents the most significant reform of Indian labour laws in decades. The four codes—covering wages, industrial relations, social security, and occupational safety—aim to modernize rules that, in some cases, date back to British colonial rule.

While the government argues that the reforms simplify work regulations and enhance worker protections, critics highlight provisions that allow companies to hire and fire employees more easily, extend factory shifts, permit night work for women, and raise the threshold for mandatory government approval of layoffs from 100 to 300 workers.

Union Protests and Demonstrations

The Centre of Indian Trade Unions led protest marches on Saturday in Bhubaneswar, eastern India, where hundreds of workers burned copies of the new labour codes in a symbolic demonstration against the government. Other unions aligned with parties opposing the ruling government have voiced similar concerns, arguing that the reforms undermine labour rights while favoring corporate flexibility.

Unions have organized nationwide protests repeatedly over the past five years as discussions and consultations over the new codes took place. Despite multiple meetings with the Labour Ministry, union representatives say their concerns remain largely unaddressed.

Business Reactions

The Indian business community has offered a mixed response. While some small and medium-sized enterprises (SMEs) warn that the new rules could increase operating costs and disrupt business continuity, larger companies generally support the measures as a way to modernize workforce management.

The Association of Indian Entrepreneurs has requested transitional support and flexible implementation mechanisms to minimize disruptions. Notably, some unions, such as the Bharatiya Mazdoor Sangh, aligned with the ruling party, have supported parts of the reforms after consultations on specific codes.

Economic Implications

India’s manufacturing sector, contributing less than a fifth of the country’s nearly $4 trillion economy, has long been constrained by strict labour rules. The government argues that simplifying regulations under the new codes will attract foreign investment, improve productivity, and provide social security benefits to workers. However, opponents stress that the reforms may disproportionately favor corporate interests over employees’ welfare.

Conclusion

The rollout of India’s new labour codes has sparked a heated debate over balancing worker protections, corporate flexibility, and economic growth. As trade unions prepare nationwide protests, the government faces pressure to address workers’ grievances while implementing reforms intended to modernize India’s labour market.