New Delhi | Nov 21, 2025 | SKY LINK TIMES |
In a landmark overhaul of India’s labour landscape, the Centre on Friday enforced the four Labour Codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020).
The Codes, effective from November 21, 2025, replace 29 Central labour laws, many of which dated back to the pre-Independence era.
Prime Minister Narendra Modi termed the rollout “one of the most comprehensive labour-oriented reforms since Independence,” saying the Codes “empower workers while simplifying compliance and easing business processes.”The Ministry of Labour and Employment said the unified framework modernises India’s labour governance, widens social-security coverage and brings long-pending structural clarity to India’s workforce regulations.
Table of Contents
Wider Coverage and Social-Security Expansion
A major highlight of the new framework is the expansion of Employees’ State Insurance (ESI) coverage. Under the Social Security Code, ESI benefits will now be available across India and can apply even to establishments with a single employee engaged in hazardous work.
For the first time, gig and platform workers — including delivery partners, ride-share drivers and freelance digital workers — are formally recognised. Aggregators will be required to contribute a share of their revenue to a dedicated social-security fund.
Minimum wage entitlement has been extended to all workers, supported by a national floor wage that aims to reduce disparities between states.
Workplace Reforms: Safety, Equity & Flexibility
The Codes permit women to work night shifts across all sectors, including mines and hazardous industries, subject to safety protocols and written consent.
Equal wages and non-discrimination provisions now apply to all genders, including transgender workers.
Fixed-term employees will now receive gratuity after one year, instead of the earlier five-year requirement, aligning benefits more closely with those of permanent employees.
The OSHWC Code mandates free annual health check-ups for workers above 40 and sets national safety standards. Work hours remain capped between 8–12 hours per day and 48 hours per week.
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Simplified Compliance for Businesses in India
The government aims to reduce red tape by introducing:
Single registration for establishments
Single licence across multiple jurisdictions
Single annual return replacing multiple filings
Labour inspections will transition to an inspector-cum-facilitator model to encourage compliance rather than punitive action alone.
Dispute resolution mechanisms have also been upgraded with two-member Industrial Tribunals and faster escalation pathways when conciliation fails.
During the transition, existing rules under earlier laws will remain valid until new operational guidelines are finalised.
A Transformational Moment for India’s Labour Market
According to government estimates, social-security coverage has surged from 19% in 2015 to over 64% in 2025. Officials say implementation of the Codes will accelerate this progress and align India’s labour governance with global standards.
While the government has positioned the Codes as a balance between worker rights and industrial flexibility, trade unions remain concerned about possible dilution of job security and collective bargaining powers — issues likely to shape labour debates in the months ahead.
The rollout of these four Codes marks one of the most significant structural reforms in India’s employment framework in decades.
Smooth Transition Expected for Labour Codes
Officials said the transition to the new Codes will be closely monitored to ensure clarity for both workers and employers. States have been advised to update their rules at the earliest so that industries can adapt smoothly without disruptions.
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