Big workforce reform!
Four Labour Codes made effective to simplify and streamline labour laws - check top details
Nov 21, 2025
India's government has announced the implementation of four consolidated labor codes, effective November 21, 2025, to modernize regulations and strengthen worker protections. This significant policy shift rationalizes 29 existing laws, aiming to create a future-ready labor ecosystem that promotes formalization, ensures timely wages, and expands social security for all workers.
In a major policy shift, the government on Friday announced the implementation of four consolidated labour codes--Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020)--with effect from November 21, 2025.
The move rationalises 29 existing labour laws and aims to modernise regulations, strengthen worker protections and align India’s labour framework with evolving employment structures.
According to a statement by the government, the new codes seek to build a future-ready labour ecosystem that promotes formalisation, ensures timely wages, expands social security, and reduces compliance burden for enterprises. The implementation also aims to support Aatmanirbhar Bharat by building resilient industries and improving workforce productivity.
The government said the reforms replace fragmented labour provisions dating back to the pre-independence era, addressing long-pending demands for simplicity and uniformity in labour laws. The new framework aims to equip industries for global competitiveness while expanding worker coverage across sectors.
Under the new regime, formal employment will be strengthened through mandatory appointment letters, universal minimum wages across sectors, compulsory timely wage payments, and free annual health check-ups for workers above 40 years. Social security benefits will be extended pan-India, including to gig workers, platform workers, and employees in hazardous industries, with Aadhaar-linked portability.
Women workers will be permitted to work night shifts across all establishments subject to consent and mandated safety measures, while anti-discrimination provisions and expanded family definitions have been introduced to improve inclusivity. The codes also guarantee equal pay, time-bound grievance redressal, and mandatory representation of women in committees.
Here are top 10 highlights from new labour Codes
1. Fixed-term staff get permanent-level benefits:
Fixed-term employees will receive benefits equal to permanent workers, including social security, medical cover and paid leave, with gratuity eligibility after one year instead of five. The move aims to reduce over-dependence on contract labour and encourage direct hiring.
2. Gig and platform workers formally recognised:
For the first time, gig and platform labour is legally defined. Aggregators must contribute 1–2% of turnover (capped at 5% of payouts) towards welfare, with Aadhaar-linked portable benefits accessible across states.
3. Wider social security net across industries:
Coverage under the Social Security Code extends nationwide, including for MSME employees, hazardous establishments with even one worker, platform workers and sectors previously outside mandatory ESI norms.
4. Minimum wage and timely payment for all workers:
All workers, regardless of sector, will receive a statutory minimum wage aligned to a national floor rate, along with mandatory timely wage payment and no unauthorised deductions.
5. Women allowed in all shifts and job roles:
Women can work night shifts and in all categories—mining, heavy machinery and hazardous sites—subject to consent and safety measures. Equal pay is mandated and representation in grievance panels is compulsory.
6. Mandatory health checks and safety norms:
Annual free health check-ups are required for workers above specified thresholds across hazardous industries, plantations, contract labour and mines, alongside national OSH standards and safety committees in large establishments.
7. Stronger protections for contract, migrant and unorganised workers:
Contract and migrant workers will receive equal wages, welfare schemes and portability benefits. Principal employers must ensure social security for contract staff and provide basic amenities such as water, rest areas and sanitation.
8. Improved working-hour rules and overtime protection:
Working hours in most sectors are capped at 8–12 per day and 48 per week, with double wages for overtime and mandatory written consent where required. Leaves accrue after 180 working days annually in sectors like exports.
9. Digital and media workers formally covered:
Journalists, freelancers, dubbing artists and media professionals now fall under the labour protection framework, ensuring appointment letters, wage security and regulated working hours.
10. Universal appointment letters and formalisation push:
Employers must issue appointment letters to all workers, improving traceable employment history, wage transparency and access to benefits to accelerate formalisation across sectors including IT, dock work and textile units.
Labour protections extend to fixed-term employees, who will receive wages and benefits at par with permanent workers, including gratuity eligibility after one year. Contract workers, migrant workers, plantation workers, dock workers and employees in hazardous sectors will receive mandatory health benefits, workplace safety standards, accident coverage and double wages for overtime.
The reforms also introduce a single registration and single licence framework across India, replacing multiple filings. An inspector-cum-facilitator system will support compliance through advisory mechanisms rather than punitive oversight. The codes further provide for national safety standards, mandatory safety committees in units with 500+ workers and streamlined dispute resolution via two-member industrial tribunals.
The statement noted that India’s social security coverage has risen from 19% of the workforce in 2015 to over 64% in 2025, and the new codes expand portability and accessibility of benefits across states and sectors. Existing laws and rules will remain in force during the transition until all subordinate regulations under the new regime are notified.
By enhancing protections for women, youth, unorganised workers and gig economy participants while reducing compliance complexity, the new labour codes aim to boost employment, skilling and industrial growth, the government said.
[The Times of India]
