Implementation of India’s Four Labour Codes

Code on Wages, 2019 | Industrial Relations Code, 2020 | Code on Social Security, 2020 | OSHWC Code, 2020

The Government of India has notified that the four consolidated Labour Codes will come into effect from 21 November 2025, replacing and rationalising 29 existing labour laws. This marks a significant shift towards a modern, simplified and worker-centric labour framework.

1. Pre-Reform vs Post-Reform Overview

A. Key Structural Changes

Area	Pre-Reform Position	Post-Reform Position
Formalisation of Employment	No mandatory appointment letters	Mandatory appointment letters for all workers
Minimum Wages	Applied only to scheduled industries	Statutory right to minimum wage for all workers
Timely Wage Payment	No uniform requirement	Mandatory timely wage payment for all establishments
Social Security Coverage	Limited coverage	PF, ESIC, gratuity and insurance extended to all workers including gig/platform workers
Women’s Employment	Restrictions on night work and specific occupations	Women permitted in all work including night shifts with safety measures ensuring equal opportunities to access higher-paying jobs.
Health & Safety	No mandatory annual health check-up	Free annual health check-up for workers above 40 years
ESIC Coverage	Restricted to notified areas	ESIC will now apply pan-India and will be mandatory for establishments with even one worker engaged in hazardous processes.
Compliance System	Multiple registrations, licences & returns	Single registration, single licence, single return

2. Key Sector-Wise Benefits

A. Workers & Employment Categories

Category	Key Benefits Under Labour Codes
Fixed-Term Employees (FTE)	FTEs will receive all benefits equal to permanent workers, including leave and social security, with gratuity after one year, equal wages, and increased direct hiring.
Gig & Platform Workers	Gig and platform workers gain statutory recognition, aggregator contributions for social security, and fully portable Aadhaar-linked welfare benefits across states.
Contract Workers	Contract workers to receive benefits equal to permanent workers, gratuity after one year (via FTE), employer-provided health and social security coverage, and free annual health check-ups.
Women Workers	Women workers to benefit from equal pay, prohibition of discrimination, night-shift opportunities with safety measures, mandatory representation in grievance committees, and expanded family coverage.
Youth Workers	Youth workers are assured minimum wages, appointment letters, paid leave protection, and wages aligned with the national floor wage to ensure a decent standard of living.
MSME Workers	MSME workers are ensured minimum wages, full social security coverage, access to basic facilities, standard working hours with double overtime, paid leave, and timely wage payments.

B. Industry-Specific Enhancements

Sector	Key Improvements
Beedi & Cigar	Beedi and cigar workers are assured minimum wages, capped working hours (8–12 per day/48 per week), double overtime with consent, timely wages, and bonus eligibility after 30 days.
Plantations	Ensures OSHWC and social security coverage, mandatory safety training and protective gear, full ESI benefits for families, and access to educational facilities for children for plantation workers.
Audio-Visual & Digital Media	Workers in digital and audio-visual sectors receive full benefits, mandatory appointment letters, timely wages, and double overtime with consent.
Mining	Ensures protection of mine workers through recognition of commuting accidents, national safety standards, free annual health check-ups, and capped working hours (8–12 per day/48 per week).
Hazardous Industries	Hazardous industry workers to receive free annual health check-ups, national safety standards, equal job opportunities for women, and mandatory safety committees for safe chemical handling.
Textiles	Ensures equal wages, welfare and PDS portability benefits, the right to raise claims for up to three years, and double wages for overtime for textile industry workers.
IT & ITES	Ensures mandatory salary release by the 7th, equal pay, night-shift opportunities for women, quick resolution of workplace disputes, and assured social security through fixed-term employment and appointment letters for IT & ITES employees.
Dock Workers	Ensures formal recognition and legal protection, mandatory appointment letters, full social security benefits (PF, pension, insurance), employer-funded annual health check-ups, and access to essential medical, sanitary, and safety facilities.
Export Sector	Ensures gratuity, PF and full social security benefits, annual leave eligibility after 180 days, timely wage protection with no unauthorized deductions, night-shift opportunities for women with consent, and enhanced safety measures including double overtime, safe transport, CCTV surveillance, and strengthened security arrangements.

3. Additional Reforms

Reform Area	Key Change
National Floor Wage	Ensures no worker is paid below minimum living standards.
Gender-Neutral Provisions	Anti-discrimination provisions extended to transgender persons.
Inspector-cum-Facilitator System	Compliance-driven approach replacing punitive inspections.
Simplified Compliance	Single registration / licence / return.
Industrial Tribunals	Faster and predictable dispute resolution with two-member tribunals.
National OSH Board	Harmonised workplace safety standards.
Mandatory Safety Committee in establishments with 500+ workers	Improves workplace accountability through structured safety oversight.
Applicability Thresholds	Higher limits for factory applicability to ease burden on small units.

With social-security coverage already expanding significantly over the past decade, the implementation of the Labour Codes marks a major step forward broadening protection, ensuring portability of benefits and placing workers, especially women, youth, gig and migrant workers, at the centre of labour governance. These reforms collectively foster a modern, flexible and pro employment ecosystem that supports both workforce welfare and industry growth.