Labour Code Reforms — Current Affairs 2026

Current Affairs Connections

Recent developments and news linked to Labour Code Reforms.

Union Budget 2025-26 Expected to Allocate More Funds for Skilling and Reskilling under Labour Codes

February 2025 (Expected)

The Industrial Relations Code, 2020, mandates the creation of a 'Reskilling Fund' for retrenched workers. As the Codes move towards full implementation, the Union Budget 2025-26 is anticipated to allocate significant funds to operationalize this provision, especially given the rapid technological changes and the need for workforce adaptability. This would be a crucial step in ensuring that increased labour market flexibility is accompanied by adequate social safety nets and opportunities for workers to transition to new roles, aligning with the broader goal of inclusive growth and addressing **employment trends and unemployment data [VY:ECO-08-02]**.

UPSC Angle: Analyze the effectiveness of the Reskilling Fund in practice. Discuss its potential to mitigate the adverse effects of retrenchment and promote continuous learning. Evaluate how such budgetary allocations reflect the government's commitment to balancing business flexibility with worker welfare, especially in the context of India's demographic dividend.

Several States Finalize Rules for Gig and Platform Workers Under Social Security Code, 2020

Late 2024 - Early 2025

The Code on Social Security, 2020, for the first time, explicitly includes provisions for gig and platform workers. States like Rajasthan have already taken initiatives (e.g., Gig Workers' Welfare Board). Expect more states to finalize their specific rules and establish welfare boards or funds for these emerging categories of workers. This move is critical for extending social security benefits to a rapidly growing segment of the workforce that traditionally falls outside conventional employer-employee relationships, addressing a significant gap in India's social safety net.

UPSC Angle: Examine the challenges and opportunities in providing social security to gig and platform workers. Discuss the role of aggregators and the state in contributing to these welfare funds. Compare state-level initiatives and assess their potential for creating a uniform national framework for gig worker protection. Analyze the implications for the future of work and the formalization of the digital economy.