New Labour Laws 2025: In a move aimed at strengthening the framework of governing workers’ rights, the Central Government has consolidated 29 labour laws into four comprehensive 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). These codes, effective from November 11, 2025, seek to simplify, consolidate, and rationalize the provisions of four existing laws:
The Code of Wages, 2019
Under the Code on Wages, a statutory right to minimum wages is established for all employees across both organized and unorganized sectors. Employers, including companies, firms, or associations, shall pay wages to employees working for them. First-time, non-imprisonable offences can be compounded by paying a penalty. Repeat offences within five years, however, empower authorities to levy enhanced fines. According to the official release, the Code replaces imprisonment for certain first-time offences with monetary fines, up to 50% of the maximum fine.
The Industrial Relations Code, 2020
The Industrial Relations Code (2020) simplifies and strengthens laws related to trade unions, settlement of industrial disputes, and conditions of employment in industrial establishments or undertakings. Under the IR Code, minor offences are made compoundable with monetary penalties.
The Code on Social Security, 2020
The Code on Social Security incorporates the existing laws related to nine Social Security Acts. It extends social security to all workers, while introducing digital systems and facilitator-based compliance. The employer will be provided a mandatory 30-day notice for compliance before initiating any legal action. First-time offences punishable with fines are compoundable:
- For fine-only: 50% of the maximum fine
- For fine/imprisonment cases: 75% of the maximum fine
The Occupational Safety, Health and Working Conditions Code 2020
The Code balances the twin objectives of safeguarding worker rights and safe working conditions. Offences punishable by fine only to be compounded by paying 50% of the maximum fine, those involving imprisonment or fine or both by 75%. Criminal penalties (imprisonment) have been replaced by civil penalties like monetary fines.
