On 21 November 2025, the Ministry of Labour & Employment of the Government of India announced that four major labour codes have come into force, marking a watershed moment in the nation’s labour-law history. These are:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
These new labour codes are meant to replace and streamline 29 existing central labour laws.
Why the change was needed
India’s labour regulation landscape has long been characterised by old and fragmented laws. Many of the existing labour statutes were enacted in the pre-independence era or in the early decades after independence. At that time the world of work, industrial structure and employment models were very different.
In the 21st century, this outdated legal framework has created several challenges. The presence of numerous laws covering different sectors, worker categories and employment types has led to a complex and often confusing compliance environment for both employers and workers. At the same time, the reach of essential benefits such as minimum wages and social security has remained limited. This is particularly the case for contractual, gig, platform and informal workers who make up a significant share of India’s workforce. Additionally, many laws suffer from outdated definitions, unclear applicability and overlapping requirements, all of which contribute to regulatory burdens that restrict flexibility, hinder industrial growth and slow down formalisation of worker rights.
This context created a clear need for a more streamlined, modern and inclusive labour law framework was felt. This led to the enactment of the current labour codes that reflects the realities of India’s current workplaces and workforce.
What the new codes bring
Worker protection
The new codes prioritise creating safer, fairer and more transparent workplaces for India’s workforce. Key changes strengthen job security, improve working conditions and expand essential labour rights.
- All workers must now receive appointment letters, increasing transparency and formal employment arrangements.
- Minimum wages now become a statutory right for all workers under the Code on Wages
- Free annual health check-ups mandated for workers aged 40+ under the OSHWC Code, promoting preventive healthcare in workplaces.
- Fixed-term employees are now eligible for gratuity after one year instead of five, and are assured the same benefits as permanent workers.
Social security
A major focus of the labour reforms is widening the safety net for all types of workers, whether in the formal or informal sector. They formalise social protection systems and make benefits easier to access across states and cities.
- Under the Code on Social Security, all workers, including gig and platform workers, are brought under its ambit.
- State specific benefits, such as welfare schemes etc. can now be availed by workers from other states in case they travel frequently in search of work.
Women and MSMEs
The codes aim to improve workforce participation for women and align labour law standards of MSMEs with other sectors. By strengthening protections, ensuring non-discrimination and standardising basic facilities, the reforms support more inclusive and productive workplaces.
- Women workers can now work in night shifts in all types of establishments (subject to consent and safety) thereby expanding their opportunity for higher income and participation.
- The codes prohibit gender discrimination and ensure that there is equal pay for equal work. `
- For MSMEs, the codes ensure standard working hours, paid leave, canteens, drinking water, rest areas, and timely payment of wages.
Ease of compliance
By cutting down on overlapping procedures and streamlining registrations the codes significantly reduce administrative burden for companies and simplify compliance.
- Single registration, single licence and a single return replace multiple filings and overlapping registrations under the previous regime.
What this means for different stakeholders
As the four labour codes come into force, their real impact will be felt differently by workers, employers and the wider labour ecosystem. Each stakeholder will experience shifts in responsibilities, benefits and expectations. Here is a breakdown of what changes for whom:
For Workers
- Greater protection: More workers will now get benefits previously unavailable such as minimum wages, gratuity, health check-ups and more.
- Informal-to-formal transition: With appointment letters and statutory guarantees, many contract, fixed-term and gig workers may find their position strengthened.
- Portability of benefits: Migrant workers, platform workers get greater access to benefits across states.
For Employers
- Simplified compliance: The new codes aim to reduce red-tape and make registrations/licences easier.
- Greater responsibility: Employers now have clearer obligations for welfare, safety, timely wage payment, health check-ups.
The activation of the four labour codes is a major milestone in India’s labour-law reform journey. By simplifying and modernising the framework, the government has attempted to strike a balance between worker protection and industrial flexibility. However, as with any reform of this scale, the proof of success will lie in effective implementation, active awareness, and tangible benefit to the millions of workers across India.
At Serein, we help companies comply with labour laws in India effectively and scale them across states and workforce types. Write to us at hello@serein.in.