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Unions aligned with parties opposing Prime Minister Narendra Modi demanded in a statement late on Friday that the laws be withdrawn ahead of nationwide protests on Wednesday.
The Modi government implemented four labor codes approved by Parliament five years ago as it aims to simplify work rules, some of which date back to British colonial rule, and liberalize conditions for investment. It says the changes improve employee safety.
While the new rules provide Social Security and minimum wage benefits, they also allow companies to hire and fire workers more easily.
Unions have strongly opposed the changes, organizing several nationwide protests over the past five years.
The Labor Ministry did not immediately respond to a Reuters request for comment on the union’s demands on Saturday. An interior ministry document on labor codes shows the government has held more than a dozen consultations with unions since June 2024.
The rules allow for women to work longer factory shifts and at night, while raising the limit for firms that require prior approval to lay off workers from 100 to 300, giving companies more flexibility in workforce management.
Businesses have long criticized India’s work rules as a drag on manufacturing, which accounts for less than a fifth of the country’s roughly $4 trillion economy.
But the Association of Indian Entrepreneurs expressed concern that the new rules would significantly increase operating costs for small and medium-sized enterprises and disrupt business continuity in key sectors. It called for transitional support and flexible implementation mechanisms from the government.
Not all unions oppose the overhaul. The right-wing Bharatiya Mazdoor Sangh, affiliated with Modi’s party, called on states to implement some of the codes after deliberating on them.
Indian states are expected to frame rules in line with the new federal code covering wages, industrial relations, social security and occupational safety.