On 21 November 2025, the Government of India took a historic step by bringing into force the Four Labour Codes a comprehensive overhaul designed to unify and modernize labour laws across the country. These landmark reforms aim to streamline regulations, enhance worker welfare, and build an adaptable workforce for India’s growth journey. [pib.gov.in]
Why These Codes Matter
India’s previous labour framework included 29 separate acts dating back to the pre- and post-independence eras. This fragmentation created compliance hurdles and failed to reflect modern workforce trends. The new codes consolidate these laws, aligning India with global labour standards and facilitating a more efficient, transparent regulatory environment.
What Has Changed
| Area | Before | After |
|---|---|---|
| Appointment Letters | Not mandatory | Mandatory for all workers |
| Minimum Wage | Limited to scheduled employments | Guaranteed for all under Code on Wages, 2019 |
| Social Security | Restricted coverage | Extended to gig and platform workers via Social Security Code, 2020 |
| Health Check-ups | Not required | Free annual check-up for workers aged 40+ |
| Wage Timeliness | Not enforced | Mandatory timely wage payment |
| Women Workers | Night shift restrictions | Now permitted with consent and safety safeguards |
| ESIC Coverage | Limited to certain establishments | Pan-India mandatory under occupational hazard rules |
Key Highlights by Sector
- Fixed-Term Employees: Now eligible for full benefits (leave, insurance, gratuity) even after one year
- Gig & Platform Workers: Ahead-of-its-time inclusion with mandatory aggregator contributions and portable social benefits.
- Women & Youth: Equal pay, inclusion in night work (with consent), health coverage, and anti-discrimination rights.
- MSME & Export Workers: Guaranteed minimum wage, formal contracts, and social security under extended codes
- Hazardous Industries & Mines: Occupational safety boards, free annual checks, and gender-neutral employment norms.
Impact & Benefits
- Workers now enjoy greater protections – job security, health benefits, social security, and wage assurances across formal and informal sectors.
- Employers benefit from simplified compliance through unified registrations and single returns, shifting from a punitive to facilitator-based model.
- The overall economy gains with a more productive, resilient, and digitally inclusive workforce, ready for global competition and nation-building.
Existing provisions under previous labour laws remain operative during the transition. Meanwhile, respective Ministries will issue rules and notifications to operationalize the codes. Enforcement will be increasingly facilitator-led, supported by new dispute resolution mechanisms and governance structures.
The implementation of these Four Labour Codes marks a paradigm shift promoting fairness, flexibility, and future-readiness in India’s labour landscape. Stay informed on the rollout of these transformative reforms