PrintFriendly
In a historic decision, the Government of India has announced that the four 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 are being made effective from 21st November 2025, rationalising 29 existing labour laws. By modernising labour regulations, enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat. Prominent international organisations such as the International Labour Organization (ILO) and the International Social Security Association (ISSA) have welcomed the Government of India’s announcement on 21st November 2025 to bring the four Labour Codes into effect
The implementation of the four Labour Codes addresses the long-pending need to move beyond colonial-era structures and align with modern global trends. Together, these Codes empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work — paving the way for a more resilient, competitive and self-reliant nation.
Benefits of Labour Reforms in Key Sectors:
1. Fixed-Term Employees (FTE):
–FTEs to receive all benefits equal to permanent workers, including leave, medical, and social security.
–Gratuity eligibility after just 1 year, instead of 5.
–Equal wages as permanent staff, increasing income and protection.
–Promotes direct hiring and reduces excessive contractualisation.
2. Gig & Platform Workers:
–‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time.
–Aggregators must contribute 1–2% of the annual turnover, capped at 5% of the –amount paid/payable to gig and platform workers.
–Aadhaar-linked Account Number will make welfare benefits easy to access, fully portable, and available across states, regardless of migration.
3. Contract Workers:
–Fixed-term employees (FTE) will increase employability and ensure social security, legal protection like benefits equal to permanent employees.
–Fixed-term employees will become eligible for gratuity after one year of continuous service.
–Principal employer will provide health benefits and social security benefits to contract workers.
–Workers to get free annual health check-up.
4. Women Workers:
–Gender discrimination legally prohibited.
–Equal pay for equal work ensured.
–Women are permitted to work night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and mandatory safety measures.
–Mandatory women’s representation in grievance redressal committees
–Provision to add parents-in-law in Family Definition of Female employees, expanding dependent coverage and ensuring inclusivity.
5. Youth Workers:
–Minimum wage is guaranteed for all workers.
–All workers to get appointment letters, – promoting social security, employment history and formal employment.
–Worker exploitation by employers is prohibited—payment of wages during leave has been made mandatory.
–To ensure a decent standard of living, workers will receive wages as per the floor wage determined by the Central Government.
6. MSME Workers:
–All MSME workers covered under the Social Security Code, 2020, eligibility based on employee count.
–Minimum wage guaranteed for all workers.
–Workers will have access to facilities such as canteens, drinking water, and rest areas.
–Provisions for standard working hours, double overtime wages, and paid leave.
Timely wage payment ensured.
7. Beedi & Cigar Workers:
–Minimum wages guaranteed for all.
–Working hours capped at 8 -12 hours per day, 48 hours per week has been capped.
–Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.
–Timely payment of wages ensured.
–Workers eligible for Bonus after completing 30 days of work in a year.
8. Mine Workers:
–The Social Security Code treats certain commuting accidents as employment-related, subject to conditions of time, and place of employment.
–Standards to standardize workplace occupational safety and health conditions.
–Health safety for all workers will be ensured. Free annual health check-up will be provided.
–Limit on working hours set to 8 to 12 hours per day, 48 hours per week to ensure health and work-life balance of the workers.
9. Hazardous Industry Workers:
–All workers will receive free annual health check-ups.
–Central Government will frame national standards for better safety of workers.
–Women can work in all establishments, including underground mining, heavy machinery, and hazardous jobs, ensuring equal job opportunities for all.
–Mandatory safety committee at each site for on-site safety monitoring, and safe handling of hazardous chemicals ensured.
10. Textile Workers:
–All Migrant Workers (direct, contractor-based and self-migrated) to get Equal wages, welfare benefits and PDS portability benefits.
–Workers can raise claims for upto 3 years for settlement of pending dues, facilitating flexible and easy resolution.
–Provision for double wages for workers for overtime.
11. IT & ITES Workers:
–Release of Salary mandatory by the 7th of every month. Transparency and trust ensured.
–Equal pay for equal work made mandatory, women’s participation is strengthened.
–Facility for women to work night shifts in all establishments – women to get opportunity to earn higher wages.
–Timely resolution of harassment, discrimination, and wage related disputes.
Guarantee of social security benefits through fixed-term employment and mandatory appointment letters.
12. Export Sector Workers:
–Export sector fixed term workers to receive gratuity, provident fund (PF), and other social security benefits.
–Every worker to have the option of availing annual leaves after 180 days of work in a year.
–Every worker to get right to timely wage payment and no unauthorized wage deductions and no wage ceiling restrictions.
–Women allowed to work in night shifts with consent, ensuring opportunity to earn higher income.
–Safety and welfare measures include mandatory written consent, double wages for overtime, safe transportation, CCTV surveillance, and security arrangements.
Labour Codes introduce several further reforms that strengthen worker protection and simplify compliance for employers:
–National Floor Wage to ensure no worker receives a wage below the minimum living standard.
–Gender-neutral pay and job opportunities, explicitly prohibiting discrimination—including against transgender persons.
–Inspector-cum-Facilitator system, shifting enforcement towards guidance, awareness and compliance support rather than punitive action.
–Faster and predictable dispute resolution, with two-member Industrial Tribunals and the option to approach tribunals directly after conciliation.
–Single registration, single licence and single return across safety and working-conditions requirements, replacing multiple overlapping filings.
–National OSH Board to set harmonised safety and health standards across sectors.
–Mandatory safety committees in establishments with 500+ workers, improving workplace accountability.
–Higher factory applicability limits, easing regulatory burden for small units while retaining full safeguards for workers.