The Centre on Friday announced the implementation of the four Labour Codes – the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). The Codes come into effect from November 21, 2025, replacing 29 Central labour laws.
Prime Minister Narendra Modi welcomed the decision, describing it as “one of the most comprehensive labour-oriented reforms since Independence.” In a post on X, he said the Codes “empower workers while simplifying compliance and easing business processes.”
Announcing the implementation, the Ministry of Labour and Employment said the Codes would modernise India’s labour governance, expand social-security coverage and simplify compliance procedures for industries. Many current labour regulations date back to the pre-Independence and early post-Independence era, and were considered fragmented and outdated.
The Ministry stated that the new framework extends statutory rights such as minimum wages, timely wage payment and appointment letters to all workers. It said the Codes are intended to support formalisation of employment, improve workplace safety and widen welfare benefits to sectors so far outside the social-security net, including gig and platform workers.
Wider coverage
Under the Code on Social Security, Employees’ State Insurance (ESI) benefits will be available pan-India and can apply to establishments with even a single employee engaged in hazardous work. The Code also recognises gig and platform workers, with aggregators required to contribute a share of revenue to a social-security fund.
Minimum wage entitlement has been extended to all categories of workers and a national floor wage is expected to ensure parity across States.
Women will be permitted to work night shifts across sectors, including in mines and hazardous industries, subject to safety measures and consent. The Codes also mandate equal wages and prohibit gender-based discrimination, including against transgender persons.
Fixed-term employment
Fixed-term employees will receive benefits on par with permanent workers, including gratuity after one year of service, a reduction from the five-year eligibility requirement under earlier laws. Contract and migrant workers will gain stronger protections, including health coverage and portability of entitlements.
The Occupational Safety, Health and Working Conditions Code provides for free annual health check-ups for workers above 40 years and prescribes national safety standards across industries. Working hours remain capped at 8–12 hours per day and 48 hours per week.
Simplified compliance
To reduce the compliance burden, the government has introduced a single registration, single licence and single return system for establishments. Labour inspections will be replaced by an inspector-cum-facilitator approach intended to emphasise guidance and timely compliance.
Dispute resolution procedures have been restructured with two-member Industrial Tribunals and faster avenues for workers to take cases forward if conciliation fails.
During the transition period, existing rules and notifications issued under previous laws will remain in force until new rules are finalised. The Ministry said that further consultations would be held with stakeholders before operational guidelines are notified.
Transition in labour landscape
According to official estimates cited by the Ministry, social-security coverage has increased from about 19% of the workforce in 2015 to more than 64% in 2025. The government said the implementation of the Labour Codes is expected to deepen this expansion and align India’s labour market with global standards.
The Codes have been projected as a structural reform balancing worker protections with industrial flexibility. Trade unions, however, have previously raised concerns over the potential dilution of job security and collective bargaining rights under the Industrial Relations Code — issues that may continue to shape the debate as implementation proceeds.