Code: The Evolving Landscape of Labour s and Digital Assets: A New Era for Code Ownership
How it unfolded
As the digital age continues to reshape the economy, the legal frameworks governing work and ownership are undergoing significant transformations. Just before the introduction of the new Labour Codes, the landscape was primarily governed by the Factories Act of 1948, which capped working hours at 48 per week and 9 hours per day. This legislation was designed for a different era, one that did not account for the complexities of modern work environments, especially in sectors beyond traditional manufacturing.
In 2020, the Occupational Safety, Health and Working Conditions Code (OSHWC Code) was introduced, marking a pivotal shift by prescribing a maximum of eight working hours per day. This change reflects a growing recognition of the need for better work-life balance and employee welfare across all sectors, not just factories. The new Labour Codes extend their provisions to all establishments, indicating a broader approach to labor rights and working conditions.
Simultaneously, the Code on Wages, enacted in 2019, further revolutionized the landscape by mandating overtime payment without a wage ceiling. This provision aims to protect workers from exploitation and ensure fair compensation for their labor, particularly as the gig economy expands and more individuals engage in flexible work arrangements.
In the realm of digital assets, a landmark ruling by the Karnataka High Court has established that digital assets, including data and proprietary code, are owned exclusively by the company. Justice M. Nagaprasanna emphasized that “in the contemporary digital age, the assets of a Company are not confined to physical or movable property. They extend, in significant measure, to data, code and intellectual propriety.” This ruling underscores the importance of intellectual property in today’s economy, where data is often considered more valuable than physical assets.
The court also clarified that shareholders cannot claim ownership over a company’s assets to negate allegations of misappropriation, reinforcing the notion that a company’s property, whether tangible or intangible, vests solely in the company itself. This legal precedent is crucial for tech companies and startups, where the value often lies in proprietary code and digital innovations.
In a parallel development, 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 follows Uttarakhand’s lead as the first Indian state to pass a Uniform Civil Code law in 2024, represents a significant step towards legal reform and social equality. The Gujarat UCC Bill prohibits bigamy and mandates the registration of live-in relationships, showcasing a commitment to modernizing personal laws in India.
The idea of a Uniform Civil Code is enshrined in Article 44 of the Indian Constitution, which calls for a common set of laws governing all citizens, irrespective of religion. The main aim of the Gujarat UCC Bill is to create a cohesive legal framework that promotes equality and justice, reflecting the changing societal norms.
As these developments unfold, they carry profound implications for workers, companies, and the legal landscape in India. The new Labour Codes and the rulings on digital assets signify a shift towards greater protection for employees and a clearer understanding of ownership in the digital realm. For companies, these changes necessitate a reevaluation of how they manage their workforce and intellectual property, ensuring compliance with evolving regulations while fostering innovation.
