India's Four Labour Codes 2025: A Complete Guide to the New Labour Laws Simplifying Worker Welfare and Business Compliance

Introduction

In a landmark decision that reshapes India's employment landscape, the Government of India implemented the four Labour Codes with effect from 21st November 2025, consolidating 29 existing labour laws into a streamlined, modern framework. This transformational reform promises better wages, enhanced safety, expanded social security, and improved welfare for India's entire workforce—from factory workers to gig economy participants.

The four Labour Codes are:

·        Code on Wages, 2019

·        Industrial Relations Code, 2020

·        Code on Social Security, 2020

·        Occupational Safety, Health and Working Conditions Code, 2020

This comprehensive guide explains the key changes, sector-wise benefits, and what these reforms mean for workers and employers across India.

Why India Needed Labour Law Reform

Many of India's previous labour laws dated back to the pre-Independence and early post-Independence era (1930s–1950s), when the economy and nature of work were fundamentally different. While most major economies modernized their labour regulations in recent decades, India continued operating under fragmented, complex, and often outdated provisions spread across 29 Central labour laws.

These restrictive frameworks struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty and increasing the compliance burden for both workers and industry. The implementation of the four Labour Codes addresses this long-pending need to move beyond colonial-era structures and align with modern global trends.

Key Reforms: Before and After Comparison

Area	Before Labour Reforms	After Labour Reforms
Employment Formalisation	No mandatory appointment letters	Mandatory appointment letters for all workers ensuring transparency and job security
Social Security Coverage	Limited coverage for select categories	All workers including gig and platform workers covered under PF, ESIC, insurance, and other benefits
Minimum Wages	Applied only to scheduled industries; large sections uncovered	Statutory right to minimum wages for all workers under Code on Wages, 2019
Preventive Healthcare	No legal requirement for annual health check-ups	Free annual health check-ups mandatory for workers above 40 years
Timely Wages	No mandatory compliance	Employers must provide timely wages to ensure financial stability
Women Workforce Participation	Restrictions on night shifts and certain occupations	Women permitted to work night shifts in all establishments with consent and safety measures
ESIC Coverage	Limited to notified areas; establishments below 10 employees excluded	Pan-India coverage; mandatory for hazardous processes even with one employee
Compliance Burden	Multiple registrations, licenses, and returns	Single registration, PAN-India single license, and single return

Sector-Wise Benefits of the New Labour Codes

Fixed-Term Employees

Fixed-term employees will now receive all benefits equal to permanent workers, including leave, medical coverage, and social security. Gratuity eligibility has been reduced from five years to just one year of continuous service, promoting direct hiring and reducing excessive contractualisation.

Gig and Platform Workers

For the first time, 'gig work', 'platform work', and 'aggregators' have been legally defined. Aggregators must contribute 1–2% of annual turnover (capped at 5% of amounts paid to workers) towards worker welfare. An Aadhaar-linked Universal Account Number ensures benefits are portable across states.

Women Workers

The reforms legally prohibit gender discrimination and ensure equal pay for equal work. Women can now work in night shifts and all types of work—including underground mining and heavy machinery operations—with their consent and mandatory safety measures. Parents-in-law can be added to the family definition for female employees, expanding dependent coverage.

MSME Workers

All MSME workers are covered under the Social Security Code, 2020. Benefits include guaranteed minimum wages, access to canteens and rest areas, standard working hours, double overtime wages, paid leave, and timely wage payment.

IT and ITES Workers

Salary release is now mandatory by the 7th of every month. Equal pay for equal work is ensured, women can work night shifts for higher earning opportunities, and harassment and discrimination disputes must be resolved in a timely manner. Social security benefits are guaranteed through fixed-term employment and mandatory appointment letters.

Plantation Workers

Plantation workers are now covered under the OSHWC Code and Social Security Code. The Codes apply to plantations with more than 10 workers or 5+ hectares. Mandatory safety training, protective equipment, and ESI medical facilities for workers and their families are now required, along with education facilities for workers' children.

Mine Workers and Hazardous Industry Workers

Certain commuting accidents are now treated as employment-related injuries. Free annual health check-ups are mandatory, and working hours are capped at 8–12 hours per day and 48 hours per week. Women can work in all establishments, including underground mining, with mandatory safety committees at each site.

Dock Workers and Export Sector Workers

Dock workers receive formal recognition with mandatory appointment letters guaranteeing provident fund, pension, and insurance benefits. Export sector fixed-term workers are entitled to gratuity, PF, and annual leaves after 180 days of work. Women can work night shifts with proper safety measures including CCTV surveillance and secure transportation.

Additional Reforms Under the Labour Codes

Beyond sector-specific benefits, the Labour Codes introduce several overarching reforms:

·        National Floor Wage ensures no worker receives wages below the minimum living standard

·        Gender-neutral pay and job opportunities, explicitly prohibiting discrimination against transgender persons

·        Inspector-cum-Facilitator system shifts enforcement towards guidance and compliance support rather than punitive action

·        Faster dispute resolution with two-member Industrial Tribunals and direct tribunal access after conciliation

·        National OSH Board to set harmonized safety and health standards across sectors

·        Mandatory safety committees in establishments with 500+ workers

·        Higher factory applicability limits, easing regulatory burden for small units

Social Security Expansion: India's Progress

Over the past decade, India has dramatically expanded social security coverage—rising from approximately 19% of the workforce in 2015 to more than 64% in 2025. This achievement has earned India recognition in the global arena for social protection milestones. The four Labour Codes mark the next major step in this trajectory, further widening the social security net and embedding portability of benefits across states and sectors.

Conclusion

The implementation of India's four Labour Codes represents a historic transformation in the country's labour governance framework. By consolidating 29 fragmented laws into four comprehensive codes, the government has created a modern, worker-friendly ecosystem that balances protection with flexibility.

These reforms place workers—especially women, youth, unorganized sector participants, gig workers, and migrants—firmly at the centre of labour governance. By reducing compliance burden and enabling modern work arrangements, the Codes are designed to boost employment, skilling, and industry growth while reaffirming the government's commitment to a pro-worker, pro-women, pro-youth, and pro-employment labour ecosystem.

Reference

Official Government Press Release:

Ministry of Labour & Employment, Government of India

Press Information Bureau (PIB) Delhi

Release ID: 2192463

Published: 21 November 2025

Link: https://labour.gov.in/sites/default/files/pib2192463.pdf

Disclaimer: This blog post is prepared for informational and educational purposes only. It is based on the official press release issued by the Ministry of Labour & Employment, Government of India (PIB Release ID: 2192463, dated 21st November 2025). While every effort has been made to present accurate information, this article does not constitute legal advice. Readers are advised to refer to the official gazette notifications, rules, and regulations issued by the Government of India for authoritative guidance. For specific compliance requirements or legal matters, please consult a qualified legal professional or labour law expert. The author and publisher disclaim any liability for decisions made based on the contents of this article.