India – Government of India Announces Implementation of Four Labour Codes

Background

• With an aim to rationalise 29 labour laws, the GOI consolidated these laws into four Labour Codes. The Code on Wages received the President’s assent on 8 August 2019, while the other three codes received the assent on 28 September 2020.
• As per the notification published in the Official Gazette, the Labour Codes become effective from 21 November 2025.

Key Highlights

Key Features of the Codes

• Mandatory appointment letters to be issued to all workers to ensure transparency and job security.
• All workers including gig and platform workers to get social security coverage.
• All workers to receive a statutory minimum wage payment to ensure financial security.
• Employers to provide all workers above 40 years of age with a free annual health checkup.
• Mandatory provision of timely wages to ensure financial stability.
• Women to get equal opportunities to earn higher income as they are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures.
• Employee State Insurance Corporation (ESIC) coverage and benefits to be extended PAN-India. Mandatory for establishments with even one employee engaged in hazardous processes to provide these benefits.
• Introduction of a single registration PAN-India, with a single license and a single return. 

Specific Sector Changes

1. Fixed Term Employees (FTEs)

• FTEs to receive all benefits as permanent employees.
• FTEs eligible for gratuity on completing one year of service.
• FTEs to receive equal wages as permanent staff.

2. Gig and Platform Workers

• Gig work, platform work, and aggregators have been defined for the first time.
• Aggregators to contribute 1-2% of annual turnover, capped at 5% of amount paid / payable to gig and platform workers.
• Aadhaar-linked Universal Account Numbers (UANs) to make welfare benefits easily accessible and fully portable.

3. Contract Workers

• Principal employer is required to provide health benefits and social security benefits (including gratuity after one year of continuous service).
• Workers to get free annual health check-ups.

4. Women Workers

• Legal provisions to prohibit gender discrimination.
• Provision of equal pay for equal work.
• Women permitted to work night shifts, in all types of work subject to their consent and mandatory safety measures.
• Mandatory representation of women in grievance redressal committees.
• Provision to add parents-in-law in definition of family for women employees.

5. Youth Workers

• Prohibition of worker exploitation and mandatory payment of wages during leave.
• Ensure minimum floor wages.

6. Micro, Small and Medium Enterprises (MSME) Workers

• All MSME workers covered under Code on Social Security subject to certain conditions.
• Workers will have access to facilities such as canteens, drinking water, and rest areas.
• Provisions for standard working hours, double overtime wages, and paid leave.

7. Beedi & Cigar Workers

• Working hours capped at 8-12 hours per day with a weekly cap of 48 hours.
• Workers are eligible to receive bonus after completing 30 days of work in a year.

8. Plantation Workers

• Plantation workers are now brought under the Occupational Safety, Health and Working Conditions Code and Code on Social Security.
• Codes applicable to plantation with more than 10 or more workers or five or more hectares.
• Mandatory safety training on handling, storing, and using chemicals.
• Protective equipment mandatory to prevent accidents and chemical exposure.
• Workers and their families to get full ESI medical facilities; education facilities for their children are also guaranteed.

9. Audio-Visual & Digital Media Workers

• Digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt persons to receive full benefits.
• Overtime work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.

10. Mine Workers

• Certain commuting accidents classified as employment-related, subject to conditions of time, and place of employment.
• Central government to notify standards to standardize workplace occupational safety and health conditions.
• Health safety for all workers to be ensured. Free annual health check-up to be provided.
• Limit on working hours set to 8 to 12 hours per day, 48 hours per week to ensure health and work-life balance.

11. Hazardous Industry Workers

• GOI to frame national standards for better safety of workers.
• Women can work in all establishments, including underground mining, heavy machinery, and hazardous jobs, ensuring equal job opportunities for all.
• Mandatory safety committee at each site for on-site safety monitoring, and safe handling of hazardous chemicals ensured.

12. Textile Workers

• All Migrant Workers (direct, contractor-based and self-migrated) to get equal wages, welfare benefits and PDS portability benefits.
• Workers can raise claims for up to three years for settlement of pending dues, facilitating flexible and easy resolution.

13. Information Technology (IT) & Information Technology Enables Services (ITES) Workers

• Salary to be mandatorily released before seventh of every month.
• Provision of equal pay for equal work for women workers.
• Women permitted to work night shifts subject to their consent and mandatory safety measures.
• Timely resolution of harassment, discrimination, and wage related disputes.

14. Dock Workers

• Dock workers to get formal recognition, legal protection.
• Provident fund, pension, and insurance benefits ensured for all, whether contract or temporary dock workers.

15. Export Sector Workers

• Fixed term workers to receive gratuity, Provident Fund (PF), and other social security benefits.
• Every worker to have the option of taking annual leaves after 180 days of work in a year.

Other significant reforms

• National Floor Wage to ensure no worker receives a wage below the minimum living standard.
• Gender neutral pay and job opportunities, prohibiting discrimination (including against transgender persons).
• “Inspector-cum-Facilitator” system, shifting enforcement towards guidance, awareness and compliance support rather than punitive action.
• Faster and predictable dispute resolution, with two-member Industrial Tribunals and the option to approach tribunals directly after conciliation.
• Single registration, single licence and single return across safety and working-conditions requirements, replacing multiple overlapping filings.
• National Occupational Safety Health Board to set harmonised safety and health standards across sectors.
• Mandatory safety committees in establishments with 500+ workers, improving workplace accountability.
• Higher factory applicability limits, easing regulatory burden for small units while retaining full safeguards for workers.

Contacts