India has officially implemented four new labour codes, replacing 29 older laws, in what is being described as the country’s largest labour reform since independence. The decision, effective 21 November 2025, aims to simplify regulations, improve worker protections, and bring India’s labour laws in line with modern economic realities.
The four codes include the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety, Health & Working Conditions Code. Together, they cover wages, contracts, social security, workplace safety, and health, affecting millions of workers across the country.
Under the new system, all workers are entitled to a minimum wage, written appointment letters, and equal pay for women. Social security benefits now cover an estimated 40 crore workers, including gig and contract workers, who were previously outside formal protection. Fixed-term employees will receive gratuity after just one year, while workers over 40 can access free annual health check-ups. Overtime work will now attract double wages, and employees in hazardous jobs will have full health coverage.
The reform also eases compliance for businesses. Employers need only a single registration, license, and return submission, replacing multiple approvals under old laws. Large establishments with more than 500 employees must set up safety committees, while a National OSH Board will standardize workplace safety norms nationwide. Labour inspectors are expected to act more as facilitators than enforcers, helping firms comply with rules.
Women workers are granted additional protections, including the right to work night shifts under safe conditions. Gig economy workers and contract staff are also explicitly recognized under the law, ensuring wider coverage of benefits such as provident fund, insurance, and welfare schemes.
The new codes aim to formalize employment, enhance social security, and simplify labour compliance, creating a more inclusive and future-ready workforce. While hailed as a landmark step, authorities acknowledge that effective enforcement and awareness campaigns will be crucial to ensure the reforms reach millions of workers on the ground.
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