The Government of India has consolidated 29 existing central labour laws into four revolutionary Labour Codes to simplify compliance, enhance ease of doing business, and provide greater social security and protection to workers across organized and unorganized sectors.
Here are the 4 New Labour Codes that are transforming India’s labour landscape:
1. Code on Wages, 2019
Implemented across India from 2019–2020 onwards
- Consolidates: – Payment of Wages Act, 1936 – Minimum Wages Act, 1948 – Payment of Bonus Act, 1965 – Equal Remuneration Act, 1976
Key Highlights & Benefits
- Universal minimum wage across all sectors
- Same wage for same work (no gender discrimination)
- Timely payment of wages & bonus
- Floor wage concept introduced
- Easier wage definitions (basic + allowances ≤ 50% of CTC)
- Inspector-cum-Facilitator system (less harassment, more guidance)
2. Industrial Relations Code, 2020
Replaces 3 old laws
- Trade Unions Act, 1926
- Industrial Employment (Standing Orders) Act, 1946
- Industrial Disputes Act, 1947
Major Changes
- Fixed-Term Employment (FTE) legally recognized with same benefits as permanent workers
- Threshold for standing orders increased from 100 to 300 workers
- Prior government permission required for lay-off, retrenchment, closure only in establishments with 300+ workers (earlier 100)
- Recognition of negotiating union/council made easier
- New “Worker Re-skilling Fund”
- Faster dispute resolution through tribunals
3. Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code)
Merges 13 old laws including Factories Act, 1948
Key Provisions
- Single registration & licensing for contractors, factories, and establishments
- Free annual health check-ups for employees
- Mandatory appointment of safety officers in establishments with 250+ workers (earlier 500/1000)
- Uniform working hours: maximum 12 hours/day including overtime
- Women allowed to work night shifts with proper safety and consent
- Special provisions for migrant workers (journey allowance, portability of benefits)
- Contract labour & inter-state migrant workers threshold increased
4. Code on Social Security, 2020
Consolidates 9 old laws including EPFO, ESI, Maternity Benefit, Gratuity
Revolutionary Features
- Social security extended to gig & platform workers (Swiggy, Zomato, Uber, etc.)
- Definition of “employee” widened – includes unorganized & fixed-term workers
- Gratuity eligibility reduced to 3 years for fixed-term employees
- Mandatory Aadhaar-based registration on national portal
- New schemes for unorganized workers (proposed National Social Security Fund)
- ESI coverage threshold reduced in some states
- Aggregators (e-commerce, cab, delivery) to contribute 1–2% of turnover for gig workers’ welfare
Current Implementation Status (as of November 2025)
- Code on Wages: Fully implemented across India
- Other 3 Codes: Rules notified by 30+ states/UTs
- Full operationalization expected by 2025–2026 in most states
Benefits for Employers & Employees
For Employers
- Single licence & registration instead of multiple
- Reduced compliance burden
- Flexibility in hiring (fixed-term employment)
- Ease of closing/relocating units (300-worker threshold)
For Workers
- Higher take-home due to new wage definition
- Social security for gig & platform workers
- Better safety & health standards
- Faster dispute resolution
- Portability of benefits (especially migrant workers)
Quick Comparison Table – Old Laws vs New Labour Codes
| Aspect | Old Laws | New 4 Labour Codes |
|---|---|---|
| Total Central Laws | 29 | 4 |
| Minimum Wage | Different in different acts | Universal across sectors |
| Fixed-Term Employment | No clear provision | Legally recognized |
| Retrenchment Permission | Required above 100 workers | Required only above 300 workers |
| Gratuity (FTE) | 5 years | On pro-rata after 3 years |
| Gig/Platform Workers | No coverage | Social security included |
| Women Night Shift | Restricted | Allowed with safety & consent |
Stay compliant with the New Labour Codes 2025 – the biggest labour reform since independence!
For latest state-wise rules, notifications, and compliance checklists, consult your HR/Legal team or visit the official Ministry of Labour & Employment portal: https://labour.gov.in
