Government Announced Implementation of Simplified 4 Labour Laws Replacing 29 Existing Labour Laws

In a historic decision, the Government of India has consolidated 29 labour laws into the following 4 comprehensive labour codes:

1. The Code on Wages, 2019;
2. The Industrial Relations Code, 2020;
3. The Code on Social Security, 2020; and 
4. The Occupational Safety, Health and Working Conditions Code, 2020 

These laws are implemented with effect from 21st November 2025, rationalising 29 existing labour laws. 

Many of India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s). So at the time of formulation of such laws, the economy and world of work were fundamentally different. Most countries have already updated and consolidated their labour regulations in recent decades. However, India continued to operate under fragmented, complex and outdated provisions spread across 29 Central labour laws. 

These restrictive frameworks struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty and increasing compliance burden for both workers and industry. 

These 4 Labour Codes aim to align with modern global trends and empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work. 

This article discusses the key changes provided by the new labour codes:

1. Comparison of the labour ecosystem, before and after the implementation of the Labour Codes:

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2. Benefits of New Labour Laws to different categories of employees:

2.1 Fixed-Term Employees (FTE): 

• Under fixed-term employment, a worker is engaged on the basis of a written contract for a fixed period of time. In such an employment arrangement, the tenure of employment is predetermined, and the worker’s employment automatically comes to an end upon this predetermined tenure elapsing.
• Under the New Labour Law code, FTEs shall receive all benefits equal to permanent workers, including leave, medical, and social security. 
• Employees shall be eligible for Gratuity after just one year instead of five, as applicable under existing law.
• Equal wages for permanent staff, increasing income and protection.
• Promotes direct hiring and reduces excessive contractualisation.

2.2 Gig & Platform Workers: 

• ‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time. 
• As per the Code on Social Security, 2020, the following are the meanings:
  
  • "gig worker" means a person who performs work in a work arrangement and earns from such activities outside of a traditional employer-employee relationship;
  • "platform work" means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services;
  • "aggregator" means a digital intermediary for a buyer or user of a service to connect with the seller or the service provider

• As per the new labour law, Aggregators must contribute 1–2% of the annual turnover, subject to a maximum of 5% of the amount paid/payable to gig and platform workers.
• Aadhaar-linked Universal Account Number (UAN) will make welfare benefits easy to access, fully portable, and available across states, regardless of migration. 

2.3. Contract Workers: 

• Fixed-term employees (FTE) will increase employability and ensure social security, legal protection and benefits equal to permanent employees.
• Fixed-term employees will become eligible for gratuity after one year of continuous service. 
• The principal employer will provide health benefits and social security benefits to contract workers. 
• Workers to get free annual health check-up. 

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2.4. Women Workers: 

• As per the new Labour law code, Gender discrimination is legally prohibited.
• Equal pay for equal work is ensured. Women are permitted to work on 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
• “Family” now includes parents-in-law for a woman employee, expanding dependent coverage and ensuring inclusivity. 

2.5. 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. 

3. Benefits of New Labour Laws to different workers of different industries:

3.1 MSME Workers: 

• All MSME workers are covered under the Social Security Code, 2020, eligibility based on employee count. 
• Minimum wage is 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. 
• Further, Timely payment of wages is also ensured. 

3.2. Beedi & Cigar Workers: 

• Minimum wages are guaranteed for all workers.
• Working hours have been capped at 8 -12 hours per day and 48 hours per week. 
• Overtime Work beyond prescribed hours shall be allowed only after obtaining consent, and pay for the same shall be at least double the normal wage rate. 
• Timely payment of wages is ensured. 
• Workers are eligible for a Bonus after completing 30 days of work in a year. 

3.3. Plantation Workers: 

• Plantation workers are now brought under the OSHWC Code and the Social Security Code. 
• Labour Codes apply to plantations with more than 10 workers or 5 or more hectares. 
• Mandatory safety training on handling, storing, and using chemicals.
• Protective equipment is mandatory to prevent accidents and chemical exposure. 
• Workers and their families to get full ESI medical facilities; 
• Education facilities for their children are also guaranteed. 

3.4. Audio-Visual & Digital Media Workers: 

• Digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt persons, will now receive full benefits. 
• Mandatory appointment letter for all workers.
• Timely payment of wages ensured. 
• Overtime Work can be obtained post-obtaining consent and subject to pay of at least double the normal wage rate. 

3.5 Mine Workers: 

• The Social Security Code treats certain commuting accidents as employment-related, subject to conditions of time and place of employment. 
• The Central Government notified standards to standardise workplace occupational safety and health conditions. 
• Health and safety for all workers will be ensured. 
• A 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. 

3.6 Hazardous Industry Workers: 

• All workers will receive free annual health check-ups. 
• The Central Government will frame national standards for the better safety of workers. 
• Women can work in all establishments, including underground mining, heavy machinery, and hazardous jobs.
• Mandatory safety committee at each site for on-site safety monitoring and safe handling of hazardous chemicals. 

3.7 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 up to 3 years for the settlement of pending dues, facilitating flexible and easy resolution. 
• Provision for double wages for workers for overtime work. 

3.8 IT & ITES Workers: 

• Release of Salary is made mandatory on the 7th of every month.;
• 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 the 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. 

3.9 Dock Workers: 

• All Dock workers to get formal recognition and legal Protection. 
• Provident fund, pension, and insurance benefits are ensured for all, whether contract or temporary dock workers. 
• Employer-funded annual health check-ups are made mandatory. 
• Dock workers get mandatory medical facilities, first aid, sanitary and washing areas, etc., to ensure decent work conditions and safety. 

4. Other Reforms by New Labour Codes

Other than reforms already discussed above, the Labour Codes introduce several further reforms that strengthen worker protection and simplify compliance for employers:

1. National Floor Wage to ensure no worker receives a wage below the minimum living standard. 
2. Gender-neutral pay and job opportunities, explicitly prohibiting discrimination—including against transgender persons.
3. Faster and predictable dispute resolution, with two-member Industrial Tribunals and the option to approach tribunals directly after conciliation.
4. Single registration, single licence and single return across safety and working-conditions requirements, replacing multiple overlapping filings.
5. National OSH Board to set harmonised safety and health standards across sectors. 
6. Mandatory safety committees in establishments with 500+ workers are improving workplace accountability. 

5. Conclusion:

The implementation of the four Labour Codes marks the next major step in this trajectory, further widening the social-security net and embedding portability of benefits across states and sectors. With expanded social security, stronger protections and nationwide portability, workers, especially women, youth, unorganised, gig and migrant workers, are firmly at the centre of labour governance. By reducing compliance burden and enabling flexible, modern work arrangements, the Codes boost employment, skilling and industry growth, reaffirming the Government’s commitment to a pro-worker, pro-women, pro-youth and pro-employment labour ecosystem.