Four New Labour Codes made effective to Simplify and Streamline Labour Laws

The new Labour Law Codes create a protected workforce and resilient industries, driving reforms for Aatmanirbhar Bharat.

On November 21, 2025, the Government of India brought into force the four Labour Codes, thereby unifying 29 central labour laws under a consolidated framework. The four codes are the Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020 and the Occupational Safety, Health and Working Conditions Code 2020. 

This move aligns India’s labour ecosystem with global standards, ensuring social justice for all workers while laying the foundation for a protected workforce and resilient industries driving labour reforms for Aatmanirbhar Bharat.

India’s Need for Labour Law Reforms

Many of India’s labour laws were framed during the pre-Independence and early post-Independence era between the 1930s and 1950s. While most major economies updated their labour regulations in recent decades, India continued operating under fragmented provisions spread across 29 central labour laws. These frameworks struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty for workers and increasing compliance burden for industries.

The implementation of the four Labour Codes addresses this need to move beyond colonial era structures and align with global trends. Together, these codes empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work.

Key Changes: Before and After Labour Reforms

The following comparison highlights the transformation brought by the four Labour Codes:

• Formalisation of Employment: Earlier, there were no mandatory appointment letters. Now, appointment letters are mandatory for all workers, ensuring transparency, job security and fixed employment through written proof.
• Social Security Coverage: Previously, social security coverage was limited. Under the Code on Social Security 2020, all workers including gig and platform workers will get social security coverage including Provident Fund (PF), Employees’ State Insurance Corporation (ESIC), insurance and other benefits.
• Minimum Wages: Earlier, minimum wages applied only to scheduled industries, leaving large sections uncovered. Under the Code on Wages 2019, all workers receive a statutory right to minimum wage payment, ensuring financial security.
• Preventive Healthcare: There was no legal requirement for employers to provide health check ups. Now, employers must provide free annual health check ups to all workers above 40 years of age, promoting preventive healthcare.
• Timely Wages: Previously, there was no mandatory compliance for timely wage payment. Now, employers must provide timely wages, ensuring financial stability and reducing work stress.
• Women Workforce Participation: Earlier, women’s employment in night shifts and certain occupations was restricted. Now, women are permitted to work at night and in all types of work across all establishments, subject to their consent and safety measures.
• ESIC Coverage: ESIC coverage was limited to notified areas and specific industries, with establishments having fewer than 10 employees generally excluded. Now, ESIC coverage extends pan India, voluntary for establishments with fewer than 10 employees and mandatory for establishments with even one employee engaged in hazardous processes.
• Compliance Burden: Multiple registrations, licences and returns across various labour laws have been replaced with single registration, pan India single licence and single return.

Benefits Across Key Sectors

Fixed Term Employees (FTE) and Contract Workers

FTEs get all benefits equal to permanent workers including leave, medical and social security. Gratuity eligibility reduced from five to one year. Equal wages as permanent staff promotes direct hiring and reduces contractualisation. Principal employers provide health and social security benefits. 

Gig and Platform Workers

For the first time, gig work, platform work and aggregators have been defined. Aggregators must contribute 1 to 2 percent of annual turnover, capped at 5 percent of the amount paid to gig and platform workers. An Aadhaar linked Universal Account Number will make welfare benefits portable and accessible across states regardless of migration.

Women Workers

Gender discrimination is legally prohibited with equal pay for equal work ensured. Women can work night shifts and in all types of work including underground mining and heavy machinery, subject to consent and safety measures. Mandatory women’s representation in grievance redressal committees is required. Parents-in-law can be added in the family definition of female employees, expanding dependent coverage.

Youth Workers

Minimum wage is guaranteed for all workers. All workers will get appointment letters promoting social security and formal employment. Payment of wages during leave is mandatory. Workers will receive wages as per the floor wage determined by the Central Government.

MSME Workers

All MSME workers are covered under the Social Security Code 2020 based on employee count. Workers will have access to facilities such as canteens, drinking water and rest areas. Provisions for standard working hours, double overtime wages and paid leave are included.

IT, ITES and Audio Visual/Digital Media Workers

Mandatory appointment letters with designation, wages and social security. Full benefits for journalists, dubbing artists and stunt persons including double overtime wages. Equal pay for equal work and salary by 7th monthly for IT/ITES workers. Women can work night shifts.

Beedi, Cigar, Mine, Dock and Hazardous Industry Workers

Minimum wages guaranteed. Working hours to be 8-12 hours/day, 48 hours/week for Mine, Cigar and Bidi workers. Consent-based double overtime wages, and widening of employment-related accidents for Mine workers. Government to notify national standards for worker safety and form Safety committees for chemical handling for Hazardous Industry. Free annual health check-ups. Women allowed in mining and hazardous jobs. Formal recognition, legal protection, and social security to Dock workers. 

Plantation and Textile Workers

Plantation workers are now covered under OSHWC and Social Security Codes (plantations with 10+ workers or 5+ hectares). ESI medical facilities for workers/families and education for children. All migrant textile workers to get equal wages, welfare and PDS portability. Workers can raise claims for up to 3 years for settlement of pending dues.

Export Sector Workers

Gratuity, PF and social security for fixed-term workers. Annual leave available after 180 days. No unauthorised wage deductions. Written consent, double overtime wages, safe transportation, CCTV and security.

Additional Reforms Under the Four Labour Codes

The four Labour Codes introduce several reforms that strengthen worker protection and simplify compliance:

• National Floor Wage ensures no worker receives wages below the minimum living standard. 
• Gender neutral pay and job opportunities explicitly prohibit discrimination including against transgender persons. 
• Faster dispute resolution is enabled through two member Industrial Tribunals with direct tribunal access after conciliation.
• A National OSH Board sets harmonised safety and health standards across sectors.
• Mandatory safety committees in establishments with 500 or more workers improve workplace accountability.

Conclusion

The notification of the four Labour Codes represents India’s most significant labour reform initiative. By consolidating 29 laws into four codes, simplifying compliance, extending social security to all workers and establishing uniform standards, the government has created a framework that balances worker protection with business flexibility. As states frame their rules under the new codes, these reforms promise improved working conditions and accelerated job creation for India’s workforce.

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India’s Four Labour Codes 2025 FAQs

1. What are the four labour codes in India 2025?

Ans. Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions Code 2020.

2. When did the four labour codes come into effect in India?

Ans. 21st November 2025.

3. How many existing labour laws did the four labour codes replace?

Ans. 29 central labour laws.

4. What is the gratuity eligibility period under the new labour codes for fixed-term employees?

Ans. One year instead of five years.

5. What is the national floor wage under the Code on Wages 2019?

Ans. A minimum wage standard set by the Central Government below which no state can set wages, ensuring no worker receives below minimum living standard.