India stands at a pivotal moment in its labour governance journey. With the introduction of the 4 Labour Codes, the country has taken a bold step toward modernizing, simplifying, and harmonizing its labour regulations. These 4 new labour codes consolidate 29 existing laws into a streamlined, progressive framework designed to support both workers and industries in an evolving economic landscape.
This landmark reform aligns India with global best practices, often compared to an emerging model of an international labour code—a system that prioritizes fairness, transparency, and efficiency.
The four labour code framework includes:
- Code on Wages, 2019
- Industrial Relations Code 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
Each code plays a unique role in shaping India’s future of work. Together, they create a unified system ensuring security, dignity, and growth for millions.
Now Gratuity in 1 Year? Instead of 5??
Yes — India just made one of the biggest worker-first changes in decades. Under the 4 Labour Codes, fixed-term employees will now be eligible for gratuity after just 1 year, instead of the earlier 5-year requirement. This is a massive win for contractual, project-based, gig and platform workers who frequently shift roles or assignments.
India Just Rewrote Its #LabourReforms
On 21st November 2025, the Government of India finally implemented what industries, workers, HR leaders, and labour experts have awaited for years:
The Four Labour Codes officially come into effect, replacing 29 outdated labour laws with a modern, unified, technology-driven labour framework.
This marks a historic reset of India’s labour ecosystem — simplified, standardised, transparent, and aligned with global standards.
What Changes From 21 Nov 2025?
Mandatory Appointment Letters
Every employer must issue an appointment letter to every worker — boosting transparency, formalisation, and legal clarity.
Minimum Wages for All
Every worker — across all states, sectors, skills and categories — now has a statutory right to minimum wages.
Universal Social Security
For the first time ever, every worker is covered:
Gig workers, Platform workers, Contract workers, Unorganised workers.
PF, ESIC, insurance, disability, maternity and more → expanded to the entire workforce.
Free Annual Health Check-Up
Mandatory for every worker above 40 — a direct boost to preventive healthcare & early diagnosis.
Women Empowerment at Workplace
Women can now work night shifts, in any occupation, including hazardous sectors — with consent and mandatory safety.
Equal pay is guaranteed.
Parents-in-law are now part of the definition of “family” for female employees — a progressive, inclusive reform.
Faster, Simplified Compliance for Employers
- India moves to:
- ✔ Single Registration
- ✔ Single License
- ✔ Single Return
- Cutting red tape and accelerating the ease of doing business.
If You’re in HR, Compliance, or Leadership — Act Now
- ✔ Update internal HR policies
- ✔ Align wages, benefits & working conditions with new Codes
- ✔ Train managers on updated safety & compliance rules
- ✔ Revisit contracts, appointment letters & onboarding formats
- ✔ Prepare for audits under the new inspector-cum-facilitator model
The clock has started ticking — early alignment = zero disruption.
A New Era for the Indian Workforce
This reform is not just structural — it’s transformational.
The Ministry of Labour & Employment, Government of India has delivered one of the most ambitious workforce reforms in independent India, paving the way for a strong, safe and future-ready labour market.
Impact of the Four Labour Code Reform on Workers & Industry
The labour law codes are more than policy changes—they represent a forward-looking vision for a stronger workforce, empowered workers, and a globally competitive economy.
The introduction of the 4 labour codes, especially the transformative Industrial Relations Code 2020, is a landmark moment in India’s journey toward labour modernization. By merging 29 outdated legislations into a cohesive framework, India has taken a decisive step toward creating a future-ready labour market grounded in fairness, safety, and ease of compliance.
These reforms position India alongside global best practices, strengthening the country’s labour governance and aligning it with an emerging labour code approach.
As the reforms take effect, both workers and employers stand to benefit from a transparent, efficient, and balanced labour ecosystem—truly marking a new era of labour empowerment.
