Centre enforces four Labour Codes to simplify, streamline India’s labour laws

NEW DELHI: In a historic decision, four labour codes which subsume several labour-related laws, came into force from Friday, as part of efforts towards a future-ready workforce for Aatmanirbhar Bharat by modernising regulations, enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work.

The 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 Code, 2020 — introduce major welfare initiatives and reforms that strengthen worker protection and simplify compliance for employers, an official release said.

The new Labour Codes ensure formalization of employment in terms of mandatory appointment letters to all workers. Written proof will ensure transparency, job security, and fixed employment, the release said. Under Code on Social Security, 2020 all workers including gig and platform workers will get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits.

The implementation of the four Labour Codes will empower ’s workers by providing them with better wages, social security, safe working conditions and equal opportunities.

The historic decision will boost investment, enable ease of doing business and make ’s workforce a… pic.twitter.com/XrYrNzAATt

— Dr. S. Jaishankar (@DrSJaishankar) November 21, 2025

Under the Code on Wages, 2019, all workers will receive a statutory right minimum wage payment. Minimum wages and timely payment will ensure financial security Employers must provide all workers above the age of 40 years with a free annual health check-up. Promote timely preventive healthcare culture.

It will be mandatory for employers to provide timely wages, ensuring financial stability, reducing work stress and boosting overall morale of the workers. According to release, women are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures. Women will get equal opportunities to earn higher incomes — in high paying job roles.

ESIC coverage and benefits have been extended Pan-India — voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes. Social protection coverage will be expanded to all workers. There will also be reduction in compliance burden.

The release said that many of India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s-1950s), at a time when the economy and world of work were fundamentally different.

︎︎ The Government has made the 4⃣ Labour Codes effective!

︎︎ India’s Labour Codes mark a major reform by modernizing labour laws, ensuring decent working conditions, fair wages, and long-term protection for workers across all sectors

Take a look!#ShramevJayate pic.twitter.com/wzw2m9qzOy

— PIB India (@PIB_India) November 22, 2025

“While most major economies have updated and consolidated their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 Central labour laws. These restrictive frameworks struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty and increasing compliance burden for both workers and industry,” the release said.

“The implementation of the four Labour Codes addresses this long-pending need to move beyond colonial-era structures and align with modern 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 — paving the way for a more resilient, competitive and self-reliant nation”, it added.

The Fixed-Term Employees will receive all benefits equal to permanent workers, including leave, medical, and social security. “Gratuity eligibility after just one year, instead of five. Equal wages as permanent staff, increasing income and protection,” the release said, adding that the the Labour Codes promote direct hiring and reduces excessive contractualisation.

‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time under the Labour codes. Aggregators must contribute 1-2 per cent of the annual turnover, capped at 5 per cent of the amount paid/payable to gig and platform workers.

Aadhaar-linked Universal Account Number will make welfare benefits easy to access, fully portable, and available across states, regardless of migration. Gender discrimination has been legally prohibited and there is equal pay for equal work ensured.

Women are permitted to work night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and mandatory safety measures.

“Mandatory women’s representation in grievance redressal committees. Provision to add parents-in-law in Family Definition of Female employees, expanding dependent coverage and ensuring inclusivity. To ensure a decent standard of living, workers will receive wages as per the floor wage determined by the Central Government,” the release said.

All MSME workers covered under the Social Security Code, 2020, eligibility based on employee count. For beedi and cigar workers, minimum wages have been guaranteed for all. “Working hours capped at 8 -12 hours per day, 48 hours per week has been capped. Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate. Timely payment of wages ensured. Workers eligible for Bonus after completing 30 days of work in a year,” the release said.

“Plantation workers are now brought under the OSHWC Code and the Social Security Code. Labour Codes apply to plantations with more than 10 workers or five or more hectares. Mandatory safety training on handling, storing, and using chemicals. Protective equipment mandatory to prevent accidents and chemical exposure. Workers and their families to get full ESI medical facilities; Education facilities for their children are also guaranteed,” it said.

The release said digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt persons will now receive full benefits. Mandatory appointment letter for all workers – clearly stating their designation, wages, and social security entitlements. Timely payment of wages ensured. Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.

The Social Security Code treats certain commuting accidents as employment-related, subject to conditions of time, and place of employment. Central Government notified standards to standardize workplace occupational safety and health conditions. Health safety for all workers will be ensured. Free annual health check-up will be provided.

Limit on working hours set to 8 to 12 hours per day, 48 hours per week to ensure health and work-life balance. Hazardous industry workers will receive free annual health check-ups.

“Central Government will frame national standards for better safety of workers. Women can work in all establishments, including underground mining, heavy machinery, and hazardous jobs, ensuring equal job opportunities for all. Mandatory safety committee at each site for on-site safety monitoring, and safe handling of hazardous chemicals ensured. All Migrant Workers (direct, contractor-based and self-migrated) to get Equal wages, welfare benefits and PDS portability benefits. Workers can raise claims for upto 3 years for settlement of pending dues, facilitating flexible and easy resolution.

Provision for double wages for workers for overtime work,” the release said. The release said that in line with the wide-ranging consultations carried out during the drafting of the Labour Codes, the Government will likewise engage the public and stakeholders in the framing of the corresponding rules, regulations, schemes, etc. under the Codes. During transition, the relevant provisions of the existing labour Acts and their respective rules, regulations, notifications, standards, schemes, etc. will continue to remain in force.

The release said over the past decade, India has expanded social-security coverage dramatically, rising from about 19% of the workforce in 2015 to more than 64 per cent in 2025, ensuring that protection and dignity reach workers across the country, and also earning recognition in the global arena for this milestone achievement in social protection. (ANI)