In a landmark reform,The Ministry of Labour and Employment issued a press release , announcing the implementation of all four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020)—effective 21 November 2025. These Codes consolidate and rationalise 29 existing central labour laws, marking one of the most significant overhauls of India’s labour ecosystem in decades.
This long-awaited reform modernises labour governance, enhances worker welfare, simplifies employer compliance, and aligns India’s workforce regulations with contemporary global standards. The move strengthens India’s path towards a future-ready workforce, resilient industries, and a more competitive, self-reliant economy under the vision of Aatmanirbhar Bharat.
Why Labour Reforms Were Needed
Most of India’s earlier labour laws were framed between the 1930s and 1950s—an era of a different industrial landscape. Over time, these fragmented and outdated regulations:
- created overlapping compliance requirements,
- limited social-security coverage,
- hindered ease of doing business, and
- failed to keep pace with new employment models such as gig work, platform work, and flexible employment.
The four Labour Codes replace this complexity with a unified framework that empowers both workers and enterprises.
Before and After: How the Codes Transform India’s Labour Landscape
| Pre-Reforms | Post-Reforms (Labour Codes) |
| No mandatory appointment letters | Mandatory written appointment letters for all workers |
| Limited social-security coverage | PF, ESIC, insurance, gig & platform worker coverage |
| Minimum wages only for scheduled industries | Universal minimum wage for all workers |
| No mandate for preventive health check-ups | Free annual health check-up for workers aged 40+ |
| No compulsory timely wage payments | Mandatory timely wage payment across all sectors |
| Restrictions on women in night shifts | Women can work in all shifts with consent & safety |
| ESIC available only in notified areas | ESIC extended pan-India; mandatory even with 1 worker in hazardous units |
| Multiple registrations & licences | Single registration, single licence, single return |
Key Sector-wise Benefits Under the Labour Codes
1. Fixed-Term Employees (FTEs)
- Equal benefits as permanent workers
- Gratuity eligibility after one year
- Promotion of direct hiring and reduction in contractualisation
2. Gig & Platform Workers
- First-time legal recognition of gig work, platform work and aggregators
- Aggregators must contribute 1–2% of turnover to social-security funds
- Aadhaar-linked Universal Account Number ensures portability of benefits
3. Contract Workers
- Social security and health benefits ensured
- Free annual health check-ups
- Gratuity after one year for fixed-term workers
4. Women Workers
- Equal pay for equal work mandated
- Night-shift work allowed with safety and consent
- Mandatory representation in grievance committees
- Parents-in-law included in family definition for female workers
5. Youth Workers
- Mandatory appointment letters
- Wage payment during leave ensured
- Wages aligned with national floor wage for decent living standards
6. MSME Workers
- All MSME workers covered under Social Security Code
- Standard working hours and paid leave
- Double wages for overtime
7. Beedi & Cigar Workers
- Minimum wages guaranteed
- 8–12 hour workday; 48-hour weekly limit
- Bonus eligibility after 30 days of work
8. Plantation Workers
- Coverage under OSHWC and Social Security Codes
- Mandatory chemical-safety training and protective gear
- ESIC benefits for workers and families
9. Audio-Visual & Digital Media Workers
- Appointment letters required
- Overtime must be consent-based with double pay
- Timely wage payment guaranteed
10. Mine Workers
- Commuting accidents included under social security (with conditions)
- Central safety standards for mines
- Annual health check-ups and strict working-hour limits
11. Hazardous Industry Workers
- Mandatory free annual health check-ups
- National safety standards by Central Government
- Safety committees for all sites with 500+ workers
12. Textile Workers
- Equal wages and welfare for migrant workers
- Claims allowed for up to 3 years
- Double wages for overtime
13. IT & ITES Workers
- Salary release by 7th of every month
- Equal pay and non-discrimination mandated
- Timely resolution of disputes
- Guarantee of social-security access
14. Dock Workers
- Formal recognition and legal protection
- Mandatory appointment letters
- PF, pension, insurance coverage for all workers
- Annual employer-funded health check-ups
15. Export Sector Workers
- Gratuity, PF, and social security for all, including fixed-term workers
- Leave entitlement after 180 working days
- Night-shift work allowed for women with consent and safety measures
Additional Major Reforms Under the Labour Codes
- National Floor Wage to ensure minimum living standards across India
- Gender-neutral employment, with explicit protection for transgender persons
- Inspector-cum-Facilitator System to promote compliance through guidance
- Two-member Industrial Tribunals for faster dispute resolution
- Single licence, registration, and return replacing multiple filings
- National OSH Board for uniform safety and health standards
- Higher applicability limits for factories, reducing compliance burden for small units
A Milestone in India’s Social-Protection Journey
India has expanded its social-security coverage from 19% in 2015 to more than 64% in 2025, earning global recognition for strengthening worker welfare. The Labour Codes further widen this safety net, ensuring nationwide portability of benefits for unorganised, migrant, gig, and platform workers.
Conclusion
The implementation of the four Labour Codes marks a historic shift in India’s labour landscape. By creating a simplified, unified, and worker-centric framework, the Government aims to:
- strengthen worker rights,
- promote gender equality,
- safeguard health and safety,
- reduce compliance burden, and
- boost employment, productivity, and industrial growth.
These reforms firmly place workers—especially women, youth, and the unorganised sector—at the centre of India’s labour governance, reinforcing a pro-worker, pro-youth, pro-women, and pro-employment national vision.