In a significant policy change, the Indian government has announced the implementation of four Labour Codes, effective from November 21, 2025. These codes 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). This reform aims to consolidate and simplify 29 existing labour laws, modernising regulations to better protect workers and align with contemporary employment practices.

The new framework is designed to create a future-ready labour ecosystem that promotes formal employment, ensures timely wage payments, and expands social security benefits. The government stated that these reforms address long-standing demands for a more straightforward and uniform labour law system, replacing outdated provisions from the pre-Independence era.

Key features of the new Labour Codes include mandatory appointment letters for all workers, universal minimum wages across sectors, and compulsory annual health check-ups for workers over 40 years old. Social security benefits will now extend to gig and platform workers, ensuring that all workers have access to essential protections.

Women workers will be allowed to work night shifts in all sectors, provided they give consent and safety measures are in place. The reforms also introduce anti-discrimination provisions and ensure equal pay for equal work, with mandatory representation of women in grievance redressal committees.

Fixed-term employees will receive benefits equivalent to permanent workers, including gratuity eligibility after one year. Contract workers and those in hazardous industries will also benefit from improved health and safety standards, as well as mandatory accident coverage and double wages for overtime.

The new system will streamline compliance by introducing a single registration and licensing framework, reducing the burden of multiple filings. An inspector-cum-facilitator system will support compliance through guidance rather than punitive measures, while national safety standards will be established for workplaces.

The Ministry of Labour & Employment highlighted that social security coverage has increased significantly, from 19% of the workforce in 2015 to over 64% in 2025. The implementation of these Labour Codes is seen as a crucial step towards enhancing worker protections and fostering a more resilient and competitive workforce in India. Existing laws will remain in effect during the transition period until the new regulations are fully notified, ensuring a smooth shift to the new framework.