India’s New Labour Codes – A New Chapter In Labour Reform
With the rollout of the four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and the Occupational Safety, Health and Working Conditions Code (2020) — the country has replaced a maze of 29 separate laws with a streamlined, unified system.
This transformation, effective from 21 November 2025, is designed to make workplaces safer, fairer, and more efficient. For employees, the codes promise minimum wages across sectors, expanded social security coverage (including gig and platform workers), formal appointment letters, and regulated working hours with paid leave. For employers, the reforms simplify compliance through single registrations, digital inspections, and clearer rules on contract labour and industrial relations.
The New Labour Codes aim to:
Protect workers’ rights in both organized and unorganized sectors.
Improve workplace safety and welfare with updated standards.
Reduce compliance burdens to encourage ease of doing business.
Align India’s labour practices with global benchmarks, supporting the vision of Aatmanirbhar Bharat.
By modernizing labour laws, India is not only safeguarding its workforce but also creating a more resilient and competitive industrial environment. These codes represent a decisive step toward building a future‑ready economy where growth and fairness go hand in hand.
Old Labour Laws vs New Labour Codes
| Aspect | Earlier Framework (29 Laws) | New Labour Codes (4 Codes) |
|---|---|---|
| Structure | Fragmented, multiple overlapping legislations | Consolidated into 4 simplified codes |
| Compliance | Multiple registrations, physical inspections | Single electronic registration, web‑based inspections |
| Wages | Different definitions across laws | Uniform definition of “wages” across sectors |
| Social Security | Limited to organized sector | Extended to gig, platform, and unorganized workers |
| Working Hours | Varied rules under different Acts | Standardized: 8 hours/day, 6 days/week |
| Leave & Benefits | Different entitlements depending on sector | Annual leave with wages for all eligible workers |
| Contract Labour | Broad definition, often misused | Clearer rules, prohibition in core activities |
| Women Employment | Restrictions on night shifts | Allowed in all shifts with consent & safety measures |
| Industrial Relations | Complex rules for layoffs & strikes | Streamlined processes, faster dispute resolution |
| Ease of Doing Business | Heavy compliance burden | Simplified, digital, transparent system |
