The Government of India has passed the four labour laws - 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 on immediate basis, effective from 21 November 2025. This development is historic in nature. These 4 laws introduced by the government are consolidated Labour Codes, replacing the old system of regulations that aligns with modern needs. These Codes streamline 29 different labour laws into a single, coherent framework designed to protect workers, modernise industries, and strengthen India’s push toward a more resilient economy.
This marks one of the most significant labour governance transformations in independent India.
Why This Reform Was Urgently Needed
The earlier laws were made when workplaces, industries, and employment structures were different in nature. As global economies modernised, India’s regulatory framework remained the same.
The new Labour Codes modernise this foundation by focusing on:
- Better protection for workers
- Formalisation of employment
- Simplified compliance for businesses
- Expanded social security
- A safer, more inclusive workplace environment
What Changes Under the New Labour Codes?
- Appointment Letters Are Now Mandatory
Every worker must receive a formal appointment letter. This builds transparency, helps maintain employment records, and strengthens job security across sectors.
- Universal Social Security Coverage
For the first time, gig workers, platform workers, contract workers, and migrant workers will be included in social security schemes. Benefits such as PF, ESI, insurance, and pension coverage become more accessible and more portable.
- Minimum Wages for All
Instead of being limited to certain industries, minimum wages now apply to every worker in the country, ensuring fairness and financial stability.
- Mandatory Timely Wage Payments
Employers must pay wages on time. This simple but powerful change improves financial planning and reduces worker exploitation.
- Annual Health Check-Ups
Workers aged 40 years and above are entitled to free annual health check-ups, promoting preventive healthcare and early diagnosis.
- Greater Opportunities and Protections for Women
Women can now work in night shifts, hazardous environments, and high-paying sectors provided necessary safety measures are in place and consent is given.
Equal pay and non-discrimination are legally enforceable.
- Major Reduction in Compliance Burden
Industries benefit from a simplified system with:
- Single registration
- Single licence
- Single annual return
This significantly eases compliance for businesses, especially MSMEs.
How Different Worker Groups Benefit
- Fixed-Term Employees
- Same benefits as permanent workers
- Eligible for gratuity after one year
- Access to social security and medical benefits
- Gig and Platform Workers
- Recognised in Indian law for the first time
- Welfare funds supported by mandatory aggregator contributions
- Easy access to benefits through digital identification
- Contract Workers
- Better access to health and social security
- Mandatory annual health check-up
- Legal protections similar to fixed-term employees
- Women Workers
- Equal job opportunities
- Safety measures mandated for night shifts
- Representation in grievance redressal committees
- Expanded definition of family to include parents-in-law
- Youth and Entry-Level Workers
- Guaranteed minimum wages
- Mandatory appointment letters
- Timely payment of wages even during leave
MSME Workforce
- Social security coverage extended
- Access to basic workplace facilities
- Double overtime wages and standardised working hours
Sector-Specific Improvements
Several industries receive tailored reforms:
- Beedi & Cigar: Regulated working hours, double overtime, timely payments
- Plantations: Safety training, protective gear, ESI for families, educational support
- Media & Digital Work: Appointment letters, overtime provisions, timely wage payment
- Mines & Hazardous Industries: Strict safety standards, annual health checks, regulated working hours
- Textiles: Equal wages for migrant workers, three-year claim window for dues, double overtime
- IT/ITES: Salary release by the 7th of every month, stronger grievance handling
- Dock Workers: PF, pension, insurance for all categories of workers
- Export Sector: Gratuity, PF, safety rules, wage transparency
Laying the Foundation for India’s Future Workforce
Over the past decade, India’s social security net has expanded dramatically, covering a growing portion of the workforce. The Labour Codes take this progress further by ensuring:
- Portability of benefits across states
- Wider coverage of workers traditionally outside formal systems
- Gender-neutral opportunities
- Better workplaces and safety standards
These developments will help in maintaining better work places for people working there and provide safety to them.
Conclusion
The introduction of these Four Labour Codes can help in modifying the Indian labour framework. It creates a balanced approach where workers are better protected and employers benefit from simplified compliance. India is making itself global ready with clearer rights, stronger social security, and modern safety standards.