Centre Notifies 2026 Rules Under The Four Labour Codes which came into force in 2025 | Current Affairs
What happened
The Centre notified implementation rules for the four Labour Codes in 2026, following their enactment in 2020 and coming into force in 2025. These codes consolidate 29 existing labour laws into Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code. The rules specify minimum wage determination, contract labour registration, social security coverage thresholds, and workplace safety protocols. This marks India's biggest labour law reform since independence, affecting over 500 million workers across organized and unorganized sectors.
Why it matters
The Four Labour Codes represent India's most comprehensive labour law overhaul since 1947, consolidating a fragmented legal framework that hindered ease of doing business and worker protection. The Code on Wages establishes universal minimum wage coverage and equal pay principles. The Industrial Relations Code streamlines dispute resolution and allows establishments with up to 300 workers to retrench without government approval (increased from 100). The Social Security Code extends coverage to gig workers and platform employees, creating portable social security accounts. The Occupational Safety Code mandates safety protocols across all sectors, not just factories. The 2026 rules notification was delayed to ensure state government readiness and stakeholder consultations. This reform addresses dual challenges: providing flexibility to employers for competitiveness while ensuring dignified work conditions. It introduces fixed-term employment, simplifies compliance through single registration, and establishes appellate mechanisms. The timing coincides with India's manufacturing push under PLI schemes, making labour law flexibility crucial for attracting investment while maintaining worker welfare standards essential for inclusive growth.
Nearly 27 Years Later, Harshad Mehta-linked Firms, Doshi Brothers Convicted for Non-compliance
What happened
Nearly 27 years after the Harshad Mehta securities scam, Mumbai sessions court convicted firms linked to the late stockbroker and Doshi brothers for non-compliance with SEBI orders. The conviction relates to alleged manipulation of shares of BPL Ltd, Videocon International Ltd, and Sterlite Industries Ltd during the early 1990s. This marks a significant closure to one of India's most notorious financial fraud cases that exposed systemic weaknesses in India's capital market regulatory framework and led to major reforms.
Why it matters
The Harshad Mehta scam of 1992 fundamentally transformed India's securities regulation landscape. Mehta exploited loopholes in the banking system's ready forward deals and government securities transactions to manipulate stock prices, particularly of companies like BPL, Videocon, and Sterlite. The scam exposed the absence of robust regulatory oversight and led to SEBI's strengthening through the SEBI Act amendments. The recent conviction after nearly three decades highlights the prolonged nature of financial crime prosecution in India's legal system. This case demonstrates how securities fraud creates long-term legal consequences, affecting corporate governance standards and investor protection mechanisms. The conviction serves as a precedent for how courts handle complex financial crimes involving market manipulation, insider trading, and regulatory non-compliance. For legal practitioners, it underscores the importance of understanding securities law evolution, the interplay between SEBI regulations and criminal law, and how regulatory orders translate into judicial proceedings. The case also reflects India's journey from a loosely regulated capital market to a more sophisticated regulatory framework with stronger enforcement mechanisms.
