India Implements Four New Labour Codes: A Transformative Shift In The Workforce Framework

India's labour governance structure has undergone a radical change with the implementation of its four labour codes. These 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the Code on Social Security, 2020; and the Occupational Safety, Health, and Working Conditions Code, 2020, replace 29 out-of-date core labour laws as of November 21, 2025. The goals of this consolidation are to improve worker welfare, modernize India's labour ecosystem, and bring the nation's regulatory framework into compliance with international norms. This change is a significant advancement with broad ramifications for companies, attorneys, and employees alike.

The Need for Reform

India's labour law landscape has been marked for decades by its complexity, fragmentation, and inconsistent application across states and sectors. The dynamic, digitalized, gig-based, and international workplace of today is substantially different from the age in which many regulations were established.

The government aims to bring labour laws into line with modern reality by implementing these four codes: an increase in gig work, contract employment, platform-based services, quicker global supply chains, interstate mobility, and an increasing focus on social security and safety.
Additionally, the reform is positioned as a component of the larger vision of "Aatmanirbhar Bharat" (self-reliant India), which includes resilient sectors, a workforce prepared for the future, and a regulatory framework that promotes worker welfare and enterprise.

What has changed

Formalisation and Transparency

1. Appointment letters are now required for all employees, which clarifies roles, pay, and other benefits.
2. According to the Code on Wages, minimum wages are now applicable to all workers, not only those in scheduled industries.

Social Security & Gig/Platform Workers

1. For the first time, gig and platform workers are now protected by the Code on Social Security.
2. A portion of aggregators' (platforms') revenue or the money provided to gig workers must go toward welfare.

Contract/Fixed-term Employment

1. Fixed-term workers are entitled to the same benefits as permanent employees, such as social security, leave, and health insurance.
2. Under certain circumstances, fixed-term employees are less eligible for gratuities (after one year rather than five).

Women, Youth, Migrant & Informal Sector

1. Subject to agreement and safety precautions, women are permitted to work nights in any place.
2. Equal pay for equal work is clearly stated, and transgender people are protected.
3. Migrant workers will now have access to more structured welfare, wage, and safety standards, particularly in industries like plantations, textiles, export units, etc.

Safety, Working Conditions & Compliance Simplification

1. To guarantee that no worker receives less than the minimum wage, a nationwide floor wage is implemented.
2. An "inspector-cum-facilitator" role that emphasizes knowledge, compliance support, and guidance replaces harsh labour inspectors in the enforcement approach.
3. Multiple overlapping filings across statutes are replaced by a single registration, license, and return.
4. To create consistent standards across industries, a National Occupational Safety & Health (OSH) Board will be formed.

Key features of the Four Labour Codes

Code on Wages, 2019

All workers, regardless of industry or sector, are granted a statutory right to a minimum wage under the Code on Wages. In the past, many workers were not covered by minimum wage laws because they only applied to scheduled industries. Every employee now has the right to timely wage payments, which guarantees financial stability and lessens stress at work. To further improve worker protection, this Code also requires regular wage payments.

Industrial Relations Code, 2020

The Industrial Relations Code consolidates laws related to trade unions, industrial disputes, and layoffs. It simplifies the process for establishing trade unions and resolving disputes, making it easier for workers to organize and for employers to manage industrial relations. The Code also introduces provisions for fixed-term employment, allowing greater flexibility in hiring while ensuring job security for workers.

Code on Social Security, 2020

The Code on Social Security provides social security benefits to all employees, including platform and gig workers. This implies that all workers will be entitled to insurance, other social security benefits, the Provident Fund (PF), and the Employees' State Insurance Corporation (ESIC), regardless of their employment status. In order to promote preventative healthcare and general well-being, the Code also requires free yearly health examinations for employees over 40.

Occupational Safety, Health, and Working Conditions Code, 2020

This Code combines legislation pertaining to health, safety, and the working environment. It requires safety precautions for all employees, especially those engaged in risky procedures. Subject to their approval and the necessary safety precautions, the Code also permits women to work all kinds of jobs, including night shifts. This clause guarantees women equal opportunities to participate actively in the workforce and achieve higher salaries.

Conclusion

The implementation of the Labour Codes is a significant advancement in the modernization of India's labour market. These codes improve worker protection, make compliance easier for companies, and advance equal opportunities for all workers by streamlining and unifying labour regulations. The changes guarantee that India's labour governance system is in line with international norms, opening the door for a workforce prepared for the future and more robust, resilient industries. For companies, attorneys, and employees, the labour Codes mark a critical turning point in the development of a more diverse, competitive, and independent country.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.