UFBU Meets DFS Secretary After Government Notifies Implementation of New Labour Codes

In the backdrop of the Government’s Gazette notification on November 21, 2025 regarding the implementation of the four Labour Codes replacing existing labour laws, the United Forum of Bank Unions (UFBU) met officials of the Department of Financial Services (DFS), Ministry of Finance, to convey concerns raised by trade unions and employees.

According to the circular issued on November 27, 2025, the DFS sought the meeting to understand apprehensions related to the new framework, which has drawn widespread queries from the workforce across sectors.

DFS Seeks Clarity on Union Concerns
During the meeting held in New Delhi, DFS was represented by Secretary M Nagaraju, Joint Secretary Shalini Pandit, Deputy Secretary Mohd. Ashraf, and Under Secretaries Sanjeev Kumar Mishra and V.S. Tiwari. Representatives from all constituent unions of UFBU participated.

DFS officials outlined that the Ministry wanted to understand the specific concerns of bank unions regarding the Labour Codes. UFBU representatives explained that labour rights in India have evolved through sustained trade union efforts and emphasised that changes in labour frameworks must be carried out in consultation with central trade unions.
Image: DFS - UFBU discussion circular released on November 27, 2025.

Focus on Youth Employment and Job Security
UFBU highlighted that the country’s youth require regular, permanent employment, and therefore labour laws should encourage stable jobs rather than contractual arrangements.

The forum noted that while the Labour Code proposes payment of gratuity after one year of service, the long-standing demand to increase the gratuity limit to ₹25 lakh has not been agreed to yet.

UFBU pointed out that although simplification of certain procedures is welcome, such changes should not result in dilution of existing labour protections.

Unions Reiterate Need for Consultative Process
The circular states that UFBU reiterated its view that any modification to labour laws should follow discussions with central trade unions and undergo a due consultation process before implementation.

Pending Sectoral Issues Also Raised
Taking advantage of the interaction, UFBU placed several long-pending sector-related issues before the DFS Secretary. These included:
-Implementation of 5-day banking
-Filling of Workman and Officer Director posts in PSBs
-Adequate recruitment of clerical, sub-staff and security staff
-Pension updation
-Premium under Group Medical Insurance Policy for retirees to be borne by banks

UFBU also conveyed its willingness to submit further suggestions aimed at strengthening public sector banks, should DFS schedule additional meetings.