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Introduction
India's four Labour Codes mark the extensive reform and compilation of the nation’s labour laws in 70 years. The Codes consolidate 29 Central Labour Laws into four primary codes: The Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020, and the Occupational Safety, Health and Working Conditions Code 2020. The enactment of the Codes in Parliament is incomplete pending notification and adoption by the Central Government. States have variously compiled or published draft Codes. As of now, the BRSR transformed what was previously a voluntary, management-level mechanism to an obligatory and reputational framework. Top 1,000 entities listed by the SEBI in 2022-23 must comply with the BRSR, which is aligned to the NGRBC.1 BRSR Guidelines include nine pillars of accountability in a corporate context: governance, product responsibility, employee accountability and fulfillment, the promotion of the welfare of concerned parties, the justice and promotion of detractors’ rights, the promotion of the environment and the legislative process. It incorporates accountability themes on inclusiveness, growth and governance.2
The statutory elements of the Labour Codes impact the BRSR’s disclosure obligations within the dynamic compliance framework. This means the BRSR’s disclosure requisites, in addition to the other laws, do impose compliance obligations. Connecting the Labour Code’s compliance requisites of definitional wage, social security (including the gig and platform economy), occupational safety, grievance, and industrial relations will shape the kind of disclosure that will be expected under BRSR’s and Section B, specifically, Principles 3, 5, and 9 of the Management and Process Disclosures, respectively.
In this context, this article breaks down the Labour Codes in detail, beyond the sub-series, and argues that the Labour Codes once implemented will require the BRSR to alter the compliance and sustainability disclosure obligations that will be in force.
PART I: THE FOUR NEW LABOUR CODES — AN OVERVIEW
1.1 The Legislative Architecture
The Labour Codes consolidate 29 central labour laws into four thematic statutes. The key structural changes relevant to BRSR disclosures are:
| Labour Code | Laws Consolidated | Primary BRSR Relevance |
|---|---|---|
| Code on Wages 2019 | Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Equal Remuneration Act | P5 (Wages/Gender Pay), P8 (Inclusive Growth), BRSR Sec A — Employee/Worker data |
| Industrial Relations Code 2020 | Industrial Disputes Act, Trade Unions Act, Industrial Employment (Standing Orders) Act | P3 (Employee Wellbeing), P5 (Workers' Rights), BRSR Sec A — grievance data |
| Code on Social Security 2020 | EPF Act, ESI Act, Maternity Benefit Act, Gratuity Act, Building & Construction Workers Act | P3 (Social Security coverage), P5 (Benefits), BRSR Sec A — Benefits disclosures |
| OSH Code 2020 | Factories Act, Mines Act, Contract Labour Act, Building Workers Act (+ others) | P3 (Safety), P5 (Safe Conditions), BRSR Sec A — Safety KPIs, contractor management |
1.2 The BRSR Framework at a Glance
The BRSR is structured into three sections:
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BRSR Structure
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This article focuses on Sections A and B, which serve as the governance and policy foundation for Section C disclosures.
To read this article in full, please click here.
Footnotes
1. Securities and Exchange Board of India, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Reg. 34.
2. Ministry of Labour and Employment, Government of India, Status of Labour Codes Implementation (2023).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
