In a major policy move, the government announced on Friday that four consolidated labour codes will come into effect from November 21, 2025. These include 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).
The new codes combine and simplify 29 existing labour laws to modernise regulations, strengthen worker protections, and make India’s labour system more suited to today’s changing work environment.
According to the government, the reforms aim to create a future-ready labour ecosystem by promoting formal employment, ensuring timely payment of wages, expanding social security, and reducing compliance burdens for businesses. They also support the Aatmanirbhar Bharat initiative by helping industries become more resilient and improving workforce productivity.
The new framework replaces outdated, fragmented labour rules that date back to pre-independence times, meeting long-standing demands for simpler and more uniform labour laws. It is designed to make Indian industries globally competitive while extending worker protections across all sectors.
Key features of the new labour codes include:
- Mandatory appointment letters for all employees, applicable across sectors.
- Compulsory timely payment of wages.
- Free annual health check-ups for workers over 40.
- Expansion of social security benefits nationwide, including for gig workers, platform workers, and employees in hazardous industries.
- Aadhaar-linked portability of social security benefits.
Under the new labour laws, formal employment will be strengthened with mandatory appointment letters, universal protections, timely wage payments, and free annual health check-ups for workers over 40. Social security benefits will now cover gig workers, platform workers, and employees in hazardous industries, with Aadhaar-linked portability across India.
Women workers will be allowed to work night shifts in all sectors if they consent, with safety measures in place. Anti-discrimination rules and expanded family definitions aim to make workplaces more inclusive. The laws also ensure equal pay, timely grievance redressal, and mandatory representation of women in workplace committees.
Top 10 highlights of the new labour codes:
- Fixed-term staff get permanent-level benefits: Temporary employees will receive the same benefits as permanent staff, including social security, medical coverage, and paid leave. Gratuity eligibility is reduced from five years to one year. This encourages direct hiring and reduces reliance on contract labour.
- Recognition of gig and platform workers: For the first time, gig and platform workers are legally recognized. Aggregators must contribute 1–2% of turnover (capped at 5% of payouts) toward worker welfare. Benefits are Aadhaar-linked and portable across states.
- Wider social security coverage: Social security benefits now extend nationwide, including to MSME employees and those in hazardous industries.
- Minimum wage and timely payment: All workers, regardless of sector, will receive a statutory minimum wage based on a national floor rate. Wages must be paid on time, with no unauthorized deductions.
- Women allowed in all shifts and roles: Women can work night shifts and in all job categories, including mining and hazardous industries, with safety measures in place. Equal pay is guaranteed, and women must be represented in grievance panels.
- Mandatory health checks and safety standards: Workers in hazardous industries, plantations, contract labour, and mines must get free annual health check-ups. Large workplaces must follow national safety standards and set up safety committees.
- Better protections for contract, migrant, and unorganized workers: These workers will receive equal wages, welfare benefits, and portability. Employers must ensure social security and provide basic amenities like drinking water, rest areas, and sanitation.
- Working-hour rules and overtime protection: Standard working hours are capped at 8–12 hours per day and 48 hours per week. Overtime must be paid at double wages, and written consent is required where needed. Leaves accrue after 180 working days in sectors like exports.
- Coverage for digital and media workers: Journalists, freelancers, dubbing artists, and media professionals are now formally covered under labour laws, ensuring appointment letters, wage security, and regulated working hours.
- Universal appointment letters and formalisation: All employers must issue appointment letters, which will improve traceable employment history, wage transparency, and access to benefits, speeding up formalisation across sectors like IT, dock work, and textiles.
