This article examines the recent developments in India’s Labour Codes and the legal stance on digital assets, highlighting key changes and their implications.
How it unfolded
In recent years, India has witnessed significant changes in its labour laws and regulations concerning digital assets. The introduction of the Occupational Safety, Health and Working Conditions Code, 2020, marks a pivotal shift in the governance of working hours, moving away from the older frameworks established by the Factories Act of 1948. This transition is critical as it reflects the evolving nature of work in contemporary society.
Prior to the enactment of the new Labour Codes, the Factories Act capped working hours at a maximum of 48 hours per week and 9 hours per day. However, the Occupational Safety, Health and Working Conditions Code now prescribes a maximum of 8 working hours per day, extending its provisions to all establishments across sectors, not just factories. This broadening of scope is significant as it aims to improve working conditions for a wider range of employees.
In addition to changes in working hours, the Code on Wages, 2019 introduced mandates for overtime payment without setting a wage ceiling. This aspect is particularly important for workers who may find themselves working beyond standard hours, ensuring they are compensated fairly for their time and effort.
Simultaneously, the legal landscape surrounding digital assets has also evolved. A landmark ruling by the Karnataka High Court established that digital assets, including data and proprietary code, are owned exclusively by the company. Justice M. Nagaprasanna emphasized that “the property of the Company, whether tangible or intangible, vests in the Company alone.” This ruling clarifies ownership rights and reinforces the notion that shareholders cannot claim ownership over a company’s assets to counter allegations of misappropriation.
The implications of these developments are profound. For employees, the new Labour Codes promise improved working conditions and fairer compensation practices. For companies, the clarification of ownership rights over digital assets ensures that their intellectual property is protected, fostering an environment conducive to innovation and growth.
Furthermore, the introduction of the Gujarat UCC Bill 2026 aims to replace religion-based personal laws with a uniform set of rules applicable to all citizens. This bill, which prohibits bigamy and mandates the registration of live-in relationships, represents a significant step towards legal reform and social equality in India. Uttarakhand was the first Indian state to pass a Uniform Civil Code law in 2024, paving the way for similar reforms across the country.
As these changes unfold, they highlight the ongoing efforts to modernize India’s legal framework in response to the complexities of contemporary society. The idea of a Uniform Civil Code is mentioned in Article 44 of the Indian Constitution, underscoring its importance in achieving equality before the law.
Overall, the recent changes in Labour Codes and the legal stance on digital assets are crucial for shaping the future of work and personal rights in India. As these reforms take root, they will likely influence the dynamics between employers, employees, and the legal system, fostering a more equitable and progressive society.
