In a landmark reform, the government on Friday brought all four labour codes into force, effectively replacing 29 older labour laws—many of which dated back to the pre- and early post-Independence period. Officials have called this the most sweeping transformation of India’s labour landscape since Independence.
The four codes—Wages, Industrial Relations, Social Security, and Occupational Safety & Health—aim to streamline decades of fragmented regulations into a unified framework that reflects today’s rapidly evolving economy.
Simplifying Compliance; Expanding Protections
According to the government, the new system will make compliance significantly easier for employers while extending social-security benefits and workplace protections to a broader section of the workforce, including:
- Gig and platform workers
- Contract and fixed-term employees
- MSME workers
- Workers in plantations, mines, textiles, IT, and audio-visual sectors
Under the new rules, fixed-term employees become eligible for gratuity after just one year, gig workers receive legal recognition, and employees in several industries will now have access to annual health check-ups, improved safety standards, and guaranteed timely wages.
The Codes also allow women to work night shifts across industries—provided safety measures are in place and employees give consent.
One Registration, One Return
A major feature of the reforms is the shift to a single registration and single return system, replacing the maze of filings previously required under multiple laws. Inspector-cum-facilitators will prioritize guidance over punitive action to support businesses during the transition.
Other key features include:
- A national floor wage, ensuring all workers earn above a legally set minimum
- Gender-neutral wage provisions, banning discrimination against women and transgender persons
- Unified safety and security standards for plantation workers, mine workers, beedi workers, dock workers and hazardous-industry employees
Workers in audio-visual and digital media—including journalists and OTT creators—will now receive formal appointment letters detailing roles, wages and entitlements.
A ‘Modern Labour Ecosystem’
The government stated that the labour codes were formed after broad consultations and will continue to undergo public engagement as detailed schemes and rules are framed. During the transition, certain provisions of older laws will remain operational as required.
India’s social-security coverage has expanded from 19% of the workforce in 2015 to over 64% in 2025, according to official estimates. The implementation of the four labour codes is positioned as the next milestone in building a more portable, inclusive and future-ready labour ecosystem that supports both workers and industries.
