How it unfolded
As India strides into a new era of regulatory frameworks, the introduction of the Labour Codes and the evolving landscape of digital assets have become pivotal topics. Just before these changes took root, the existing legal structure governing working hours and asset ownership was largely dictated by the Factories Act of 1948, which capped working hours at 48 per week and 9 hours per day. This antiquated framework was increasingly seen as inadequate in addressing the complexities of modern work environments.
In 2020, the Occupational Safety, Health and Working Conditions Code (OSHWC) was introduced, marking a significant shift in labour regulations. This new code prescribes a maximum of eight working hours per day, extending its provisions beyond factories to encompass all establishments across various sectors. This expansion reflects a growing recognition of the need for comprehensive worker protections in an increasingly diverse economy.
Simultaneously, the Code on Wages, enacted in 2019, further revolutionized the landscape by mandating overtime payment without any wage ceiling. This change aimed to ensure fair compensation for workers, acknowledging the demands of a fast-paced work culture that often requires extended hours. Together, these codes represent a concerted effort to modernize labour laws and enhance worker rights in India.
In the realm of digital assets, a landmark ruling by the Karnataka High Court underscored the ownership of digital assets like data and proprietary code. Justice M. Nagaprasanna articulated that in the contemporary digital age, a company’s assets extend beyond physical property to include intangible assets such as data and intellectual property. This ruling clarified that ownership of these assets resides exclusively with the company, reinforcing the legal framework around corporate ownership and intellectual property rights.
The court’s decision also emphasized that shareholders cannot claim ownership over a company’s assets to counter allegations of misappropriation. This legal clarity is crucial for companies navigating the complexities of digital assets, ensuring that proprietary information remains protected and that companies can operate without the fear of internal disputes over ownership.
In a parallel development, the introduction of the Gujarat Uniform Civil Code (UCC) Bill in 2026 aims to replace religion-based personal laws with a uniform set of rules applicable to all citizens. This initiative follows Uttarakhand’s pioneering step in 2024, when it became the first Indian state to pass a Uniform Civil Code law. The Gujarat UCC Bill not only prohibits bigamy but also mandates the registration of live-in relationships, reflecting a significant shift towards legal reform and social equality.
The provisions of the Gujarat UCC Bill, however, will not apply to Scheduled Tribes and certain protected groups, indicating a nuanced approach to legal reform that seeks to balance uniformity with cultural sensitivity. The idea of a Uniform Civil Code is rooted in Article 44 of the Indian Constitution, which advocates for a common set of laws governing personal matters for all citizens, irrespective of religion.
As these legal frameworks evolve, they hold profound implications for workers, companies, and society at large. The new Labour Codes aim to enhance worker protections and adapt to the realities of modern employment, while the rulings on digital assets clarify ownership rights in an increasingly digital economy. Together, these developments signify a transformative period in India’s legal landscape, one that seeks to harmonize traditional values with contemporary needs.
