New Delhi: In a landmark overhaul of India’s labour governance framework, the Union government on Friday announced that all four consolidated labour codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020) — will come into force on 21 November 2025.
The reform marks the biggest restructuring of labour regulations since Independence, replacing 29 existing laws with a simplified, unified and modern system. The government said the move will strengthen worker protections, reduce compliance burdens, support formalisation and prepare India’s workforce for evolving industrial and digital ecosystems.
A unified framework replacing 29 legacy laws
According to the government’s statement, the new codes seek to create a future-ready labour ecosystem that supports Aatmanirbhar Bharat, enhances productivity and ensures transparent wage and social security practices.
The four codes replace fragmented legislation dating back decades and address long-pending demands for uniformity across states. The government said the transition will help industries operate with greater clarity, reduce paperwork and align India with global labour standards.
Focus on formalisation and worker welfare
The new regime mandates appointment letters for all workers, universal minimum wages, strict timelines for salary payments, and compulsory free annual health check-ups for employees aged above 40 years.
Social security coverage has been expanded nationwide — including for gig workers, platform workers, MSME employees and workers in high-risk sectors. Benefits will be Aadhaar-linked and portable across state borders.
Women workers will be allowed to work night shifts in all sectors, including mining and hazardous industries, subject to safety conditions and written consent. Gender-equal wages and mandatory representation of women in workplace committees have been incorporated.
Top 10 highlights of the new labour codes
1. Fixed-term employees to get permanent-level benefits
Workers on fixed-term contracts will receive benefits equivalent to permanent staff, including paid leave, social security and medical cover. Gratuity will be payable after one year instead of five.
2. Gig and platform workers formally recognised
For the first time, gig and platform labour will be legally defined. Aggregators will contribute 1–2% of turnover (capped at 5% of payouts) towards welfare schemes. Benefits will be portable and Aadhaar-linked.
3. Expanded social security net
Mandatory coverage under the Social Security Code will extend nationwide, covering MSMEs, hazardous workplaces, contract staff and segments previously outside ESI norms.
4. Universal minimum wage and timely payments
All workers across sectors will receive a statutory minimum wage, aligned with a national floor rate. Employers must ensure timely salary payments with no unauthorised deductions.
5. Women allowed in all shifts
Women will be permitted to work in night shifts and across all job categories — including mining and heavy machinery — with mandated safety measures. Equal pay and representation in grievance bodies are mandatory.
6. Mandatory health checks and safety standards
All workers above specific age or industry thresholds will receive annual health check-ups, especially in hazardous sectors. Establishments with 500+ employees must form safety committees.
7. Protection for migrant, contract and unorganised workers
Migrant and contract workers will get equal wages, welfare support and portability benefits. Principal employers must ensure social security for contract workers and provide basic amenities.
8. Working-hour reforms
Working hours will be capped between 8–12 hours per day and 48 hours per week, with double wages for overtime. Consent-based overtime rules will apply, and annual leave accrues after 180 days in certain industries.
9. Coverage for digital and media workers
Journalists, freelancers, content creators and media professionals will come under formal labour protection, with guaranteed appointment letters and regulated working hours.
10. Universal appointment letters
All employers must issue formal appointment letters, ensuring traceability of employment history, wage transparency and better access to welfare benefits.
Compliance ease for employers
The government has introduced a single registration and single licence mechanism across India, replacing multiple filings. An inspector-cum-facilitator system will promote supportive compliance rather than punitive enforcement.
Industrial disputes will be handled by streamlined two-member tribunals, reducing adjudication delays.
Existing laws to remain during transition
The government clarified that existing laws and rules will continue during the transition period until subordinate legislation under the new codes is notified.
Social security coverage in India has risen from 19% of the workforce in 2015 to over 64% in 2025, and the new codes aim to push this further by extending protections to gig workers, women, youth and unorganised-sector workers.
A transformative step for India’s labour landscape
By expanding coverage, reducing complexity and ensuring equity in workplaces, the government hopes the new labour codes will boost employment generation, improve ease of doing business and strengthen India’s global industrial competitiveness.