Assessing the Effectiveness of India’s New Labour Codes: Implications for the Unorganised Sector

The Indian economy features a large unorganised workforce making up nearly 85–90% of total employment, contributing significantly to the nation's output but largely lacking social security and formal protections. In 2019–2020, the Government of India merged 29 central labour laws into four comprehensive labour codes — the Code on Wages, the Code on Social Security, the Industrial Relations Code, and the Occupational Safety, Health and Working Conditions (OSHWC) Code. These reforms aimed to simplify compliance, encourage formalisation, and improve worker welfare. Nonetheless, concerns remain about the inclusiveness and enforceability of these codes in protecting informal and unorganised workers. This paper critically analyses the effectiveness of India’s new labour codes from the standpoint of the unorganised sector. Through a review of policy documents, government data, and scholarly analyses, the study examines the conceptual intent, institutional preparedness, and practical outcomes of these reforms. The findings reveal persistent implementation challenges, definitional ambiguities, and limited outreach to the informal workforce. Despite progressive provisions such as the e-Shram portal and expanded social security coverage, the reforms’ effectiveness remains contingent upon state-level execution, awareness generation, and digital inclusion. The paper concludes by offering policy recommendations for inclusive enforcement, participatory governance, and adaptive regulatory frameworks.