India will implement the four Labour Codes on 21 November 2025, replacing 29 labour laws. Learn key provisions, reforms, worker rights, and compliance changes.
Introduction
In a landmark step towards overhauling India’s labour regulatory framework, the Government of India has announced that all four Labour Codes—the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions (OSH) Code, 2020—will be implemented from 21 November 2025. Notifications to this effect have been issued in the Official Gazette by the Ministry of Labour and Employment.
This reform marks a major consolidation of labour legislation, replacing 29 existing Central labour laws, and is being described by the Centre as a “historic modernisation” aligned with the needs of a growing and diverse workforce.
Why the Labour Codes Were Needed
Many of India’s earlier labour laws originated in the pre-Independence and early post-Independence period. Over time, these laws became complex, fragmented and outdated, resulting in multiple compliances and ambiguities for both employers and workers.
The new unified Labour Codes aim to:
- Simplify compliance
- Reduce legal confusion
- Expand worker protection
- Ensure uniformity across sectors
- Promote ease of doing business
The Codes also extend benefits to previously unprotected categories including gig workers, platform workers, contract employees, migrant labourers, women workers, and MSME employees.
Major Reforms Under the New Labour Codes
- Universalisation of Minimum Wages
The Code on Wages ensures minimum wages for all workers, regardless of sector or skill level. It also mandates timely payment of wages, strengthening financial security.
- Mandatory Appointment Letters
Every worker must receive a formal appointment letter, reducing informal employment and ensuring documentation of service conditions.
- Expanded ESIC and Social Security Coverage
Under the Social Security Code:
- ESIC coverage now extends across India,
- Even establishments with one hazardous-process worker come under ESIC,
- Fixed-term employees gain access to PF, insurance and gratuity within one year of service.
- Health and Safety Enhancements
The OSH Code introduces:
- Free annual health check-ups for workers above 40
- Gender-neutral wages
- Permission for women to work night shifts subject to adequate safety measures
- Stricter rules for hazardous industries and mines
- Mandatory safety committees for larger establishments
- Social Security for Gig and Platform Workers
For the first time in India, gig and platform workers are legally entitled to social-security benefits funded partly by aggregator contributions such as app-based platforms.
- Streamlined Compliance for Employers
The Codes introduce:
- Single registration
- Single licence
- Single return
This replaces numerous registrations under earlier laws, reducing compliance burdens.
An inspector-cum-facilitator model ensures that authorities prioritise guidance over punishment, helping establishments understand their obligations.
- Faster Industrial Dispute Resolution
Specialised industrial tribunals with defined timelines aim to provide:
- Speedy resolution
- Transparent proceedings
- Predictable outcomes for both employers and workers
Sector-Specific Improvements
The Codes also include targeted reforms such as:
- Double wages for overtime
- Enhanced safety norms in mines and hazardous industries
- Protection for workers in IT/ITES, ports, plantations, textiles, export units, and the audio-visual sector
- Welfare measures for beedi and cigar workers
These provisions ensure that each industry is aligned with modern workplace requirements.
Transition Period and Implementation
During the transition, existing labour laws and rules will continue until the corresponding rules under the new Labour Codes are finalised after stakeholder consultation. This phased approach ensures clarity and smooth adoption across states and industries.
Impact on India’s Workforce
The government noted that India’s social-security coverage has expanded from 19% in 2015 to over 64% in 2025. The rollout of the Labour Codes is expected to:
- Broaden protection
- Improve portability of benefits
- Strengthen worker welfare
- Build a more “protected, productive and future-ready workforce”
Overall, the Labour Codes are positioned to bring India’s labour ecosystem closer to international standards while supporting the vision of Aatmanirbhar Bharat.
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