Tradeflock Asia

A country’s workforce is its backbone. But recently, countless instances have been recorded where the workforce is not given its due and exploited by billion-dollar enterprises. Recently, a case emerged from India where an engineer named Nikhil Somwanshi committed suicide because of the work pressure his company was putting on him. To ensure that big, billion-dollar companies do not exploit their workforce, governments all around the world develop labour codes. These codes are laws that discuss how an employee must be treated in terms of pay, working hours, vacations and work-life balance. In this blog, we will discuss the labour rights codes in four of the top economies of Asia. So, let’s get started. 

Labour Codes in Asia’s Top Four Economies

Before reading about the labour codes in top Asian countries, its worth noting that take all of it with a grain of salt as more often than not, the breach of these laws is never reported. 

China

China is the largest economy in Asia, with a nominal GDP exceeding $18.27 trillion in 2025. Its key labour laws include the Labour Contract Law (2008, amended 2012), governing contracts, wages, and conditions. Provisions require written contracts, regulate probation, and set termination and severance rules. The Labour Law of the People’s Republic of China (1995, amended 2018) limits working hours to 8 per day and 44 per week, with overtime at 150% of regular wages. Recent discussions on platforms like X highlight concern for gig and platform workers, but as of May 2025, no new labour codes have been enacted since 2018. China’s labour laws promote stability but face criticism for weak enforcement, particularly for migrant workers, as studies reveal that rural-to-urban migrants often lack formal contracts.

India

In 2025, India recently surpassed Japan to become the second biggest economy in Asia. Since 2019- 2020, it has developed four new labour codes: the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health, and Working Conditions Code (2020). These codes consolidate 29 central labour laws, streamlining regulations to enhance business conditions. Key changes include standardised minimum wage laws, improved social security for gig workers, and relaxed hiring and firing rules in some sectors. However, as of May 2023, rollout is delayed due to slow state-level rule establishment, trade union opposition, and the need for stakeholder consensus. No updates on enforcement are expected by May 2025, indicating these codes remain unimplemented. Critics argue the codes favour employers, while supporters claim they will boost economic growth.

Japan

Japan, the third-largest economy in Asia, operates under the Labour Standards Act (1947, last amended 2024). This law sets a standard 40-hour workweek, with overtime pay at 125% of regular wages. The 2024 amendment introduced stricter penalties for non-compliance with overtime rules, following public outcry over “karoshi” (death from overwork). The Work Style Reform Legislation (2019) caps overtime at 45 hours per month and mandates at least 5 days of paid leave annually for employees working over 30 hours weekly. Japan’s labour market is known for rigidity, with challenges in hiring and firing, but recent reforms aim to improve flexibility while protecting workers. No new labour codes have been introduced in 2025, but the government continues to push for better work-life balance.

South Korea

South Korea, the fourth-largest economy in Asia, operates under the Labour Standards Act (1953, last amended 2023). The 2023 amendment reduced the maximum workweek from 52 to 48 hours, including overtime, following debates over worker burnout. It also mandates at least 11 hours of rest between shifts and increases paid annual leave to a minimum of 15 days for employees with over one year of service. The Minimum Wage Act (1986, amended yearly) set the 2025 minimum wage at approximately 10,030 KRW per hour (about $7.50 USD), a 3% increase from 2024, reflecting inflationary pressures. Moreover, the country is planning to bring in new labour laws shortly. 

Ensuring Workers Get Their Dues!

Although Labour laws are for everyone, they are most important for low-wage workers. These people quite literally break themselves in half doing jobs that are extremely demanding and mostly life-threatening, and the gratitude for that is sorely lacking. It’s the government’s job to ensure that working-class people receive the basic quality of life, something the workers are entitled to. 

About Author
Navid Moradi
View All Articles

Related Posts