An Analysis of Impact of New Labour Code on Organised and Unorganised Sector in India

Indian Labour Legislations are playing pivotal role in maintaining harmony at Workplace in 2020, the - Govt of India had introduced New Labour codes to rationalising 29 existing labour laws in 4 labour codes namely the code on wages 2019, The IR CODE 2020, The code on social security 2020 & the occupational health & safety code 2020 with effect from 21st Nov, 2025. Labour reforms are an important component of economic development and workforce regulation in India. These reforms aim to simplify labour regulation, enhance worker protection, and promote ease of doing business. However, their implications differ significantly between the organized and unorganized sectors, which together form the backbone of India's labour market. This study conducts a systematic review of existing literature to examine how the labour codes influence employment conditions, social security coverage, compliance requirements, and worker welfare across both sectors. The review finds that while the codes provide regulatory simplification and improved compliance mechanisms for the organized sector, the unorganized sector faces challenges such as limited awareness, weak enforcement mechanisms, and barriers to accessing social security schemes. The study concludes that the success of labour codes depends on effective implementation, improved institutional capacity, and targeted policy support for informal workers.