Ministry of Labour & Employment
Government Makes the Four Labour Codes Effective to Simplify and Streamline Labour Laws
Four Labour Codes Herald Transformational Change: Better Wages, Safety, Social Security & Enhanced Welfare for India’s Workforce
Codes lay the foundation for a protected, future-ready workforce and resilient industries, boosting employment and driving labour reforms for Aatmanirbhar Bharat.
Code aligns India’s labour ecosystem with global standards, ensuring social justice for all workers.
Posted On: 21 NOV 2025 3:00PM by PIB Delhi
Introduction
In a historic decision, the Government of India has announced that the Four Labour Codes — the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and the Occupational Safety, Health and Working Conditions Code 2020 — are being made effective from 21st November 2025, rationalising 29 existing labour laws.
By modernising labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat.
Why These Reforms Were Needed
Many of India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), when economic realities were entirely different. India continued to operate under fragmented, outdated provisions spread across 29 Central labour laws. These restrictive frameworks increased compliance burden and hindered modern employment systems.
The new Labour Codes align the system with global standards, ensuring balanced protection for both workers and employers.
Before vs After Labour Codes
| Pre Labour Reforms | Post Labour Reforms |
|---|---|
| No mandatory appointment letters | Mandatory appointment letters for transparency and job security |
| Limited Social Security Coverage | PF, ESIC, insurance coverage extended to all workers including gig & platform workers |
| Minimum wages applied only to scheduled industries | Statutory minimum wages for all workers |
| No legal requirement for annual health check-ups | Free annual health check-up for workers above 40 |
| No mandate for timely wages | Mandatory timely wage payment |
| Restrictions on women in night shifts | Women allowed in night shifts with safety provisions |
| ESIC limited to notified areas | Pan-India ESIC coverage including hazardous-process units |
| Multiple registrations and returns | Single registration, PAN-India license, and single return |
Benefits Across Key Sectors
1. Fixed-Term Employees (FTE)
- Equal benefits as permanent workers
- Gratuity eligibility after one year
- Promotes direct hiring and reduces contractualisation
2. Gig & Platform Workers
- Gig work, platform work, and aggregators defined legally
- Aggregators must contribute 1–2% of turnover to welfare funds
- Aadhaar-linked Universal Account Number for portability
3. Contract Workers
- FTE improves employability and benefits
- One-year gratuity eligibility
- Health & social security benefits from principal employer
4. Women Workers
- Gender discrimination prohibited
- Equal pay for equal work
- Night shift allowed with safety measures
- Parents-in-law included in family definition
5. Youth Workers
- Minimum wage for all
- Mandatory appointment letters
- Wage protection and transparency
6. MSME Workers
- Full social security coverage
- Minimum wage guarantee
- Standard working hours and paid leave
7. Beedi & Cigar Workers
- Minimum wages guaranteed
- Working hours capped at 8–12 per day
- Mandatory overtime double wages
8. Plantation Workers
- Included under OSHWC and Social Security Codes
- Mandatory safety training & protective equipment
- ESI medical facilities for workers’ families
9. Audio-Visual & Digital Media Workers
- Appointment letters mandatory
- Timely wages & overtime protections
10. Mine Workers
- Accidents during commuting covered under conditions
- Central safety standards
- Free annual health check-ups
11. Hazardous Industry Workers
- Pan-India safety standards
- Women allowed in hazardous roles
- Mandatory safety committee
12. Textile Workers
- Equal wages & benefits for migrant workers
- Double wages for overtime
13. IT & ITES Workers
- Salary release by 7th of every month
- Night shift allowed for women
- Mandatory appointment letters
14. Dock Workers
- Formal recognition & social security
- Free annual health check-ups
15. Export Sector Workers
- FTEs receive gratuity & PF
- Annual leave after 180 days
- Night shift allowed for women
Additional Key Reforms
- National Floor Wage introduced
- Gender-neutral opportunities
- Inspector-cum-facilitator model introduced
- Faster dispute resolution via Industrial Tribunals
- Single registration, license & return
- National OSH Board for safety standards
- Mandatory safety committees for 500+ workers
Conclusion
The implementation of the Four Labour Codes marks a major milestone in India’s labour transformation journey. With expanded social security, increased protections, simplified compliance, and modernised employment policies, the Codes place workers — especially women, youth, gig, and migrant workers — at the centre of governance.
These reforms will boost employment, skill development, entrepreneurship and industrial growth, strengthening India’s pathway toward Aatmanirbhar Bharat.
Rini Choudhury / Anjelina Alexander
Release ID: 2192463
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