Government Implements Four Labour Codes, Marking Historic Reform For India’s Workforce
The Government of India has implemented the four Labour Codes from 21 November 2025, marking one of the most significant labour reforms in the country’s history. Replacing 29 existing laws, the Codes on Wages, Industrial Relations, Social Security and Occupational Safety, Health and Working Conditions establish a modern, unified regulatory framework aimed at strengthening worker welfare, enhancing social security, improving workplace safety and simplifying compliance for industries.
The move brings India’s labour ecosystem in line with global standards and supports the vision of building a future-ready, competitive and self-reliant workforce.
These reforms overhaul colonial-era labour laws that were fragmented and unable to keep pace with changing economic realities. With the new Codes, all workers will receive mandatory appointment letters, ensuring formalisation and greater transparency in employment. Social-security benefits such as provident fund, ESIC, insurance and welfare schemes have been extended to all categories of workers, including gig and platform workers.
The Codes guarantee minimum wages and timely payment across sectors, while introducing free annual health check-ups for workers above 40. Women will now be able to work in all sectors, including night shifts and hazardous roles, subject to safety measures, ensuring greater economic participation and equal opportunities.
ESIC coverage has been expanded nationwide, even for establishments with a single worker engaged in hazardous processes.
The reforms also significantly reduce compliance burden by replacing multiple registrations and filings with a single registration, single licence and single return system. Sector-specific benefits have been incorporated across industries including textiles, MSMEs, plantations, mining, audio-visual, IT/ITES, docks, hazardous units and export sectors.
Fixed-term employees gain parity with permanent workers, including gratuity eligibility after one year. Gig and platform workers receive legal recognition and dedicated welfare contributions from aggregators. Contract workers, migrant workers and youth workers gain enhanced protection, minimum wages, improved safety conditions and access to social security.
To strengthen worker protection, the Codes introduce a national floor wage, gender-neutral provisions, mandatory safety committees in large establishments and clearer occupational safety standards.
Dispute resolution has been made faster and more predictable through two-member Industrial Tribunals and streamlined conciliation processes. An Inspector-cum-Facilitator system shifts enforcement towards guidance and compliance support rather than punitive action.
Over the past decade, India’s social-security coverage has grown from 19% in 2015 to more than 64% in 2025, and the implementation of the Labour Codes marks the next major leap in this trajectory. With wider social security, modernised regulations and nationwide portability of benefits, the Codes place workers, especially women, youth, gig and migrant workers, at the centre of labour governance while offering industries the flexibility and clarity needed for growth.
The Government has stated that public and stakeholder consultations will continue during the framing of rules and schemes under the Codes, ensuring a smooth transition as India enters a new era of labour reform.
