Major Labour Reforms put into effect in India India Enforces 4 New Labour Codes in place of 29 Existing Labour Laws

On 21 November 2025, the Government of India vide a press release (Press Release) put into effect the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020) (Labour Codes). This historic labour reform replaces 29 existing central labour laws and ushers in a streamlined, future-ready framework designed to enhance worker protection, promote inclusive welfare and simplify regulatory compliance.

Some of the key reforms under the Labour Codes are as follows:

  • All workers will need to be provided mandatory appointment letters, to establish formal employment, with written proof of employment terms and increased job security;
  • All workers would have a statutory right to a minimum wage replacing the old “scheduled employment” based wage framework;
  • Employers are legally required to pay wages on time, strengthening financial stability for workers;
  • All workers including gig and platform workers gain access to social security benefits, such as provident fund, and insurance;
  • Employers will need to provide free annual health check-ups for workers aged 40 and above;
  • Women have been included to work night shifts in all establishments with their consent and required safety measures, thereby expanding job opportunities for women;
  • Employee State insurance benefits are now extended pan-India; even very small establishments would need to comply; and
  • A single registration, single licence and single return to reduce regulatory burden has been introduced across safety and working-conditions requirements, replacing multiple overlapping filings.

The Press Release also states certain benefits for workers like equal pay for equal work, social security coverage, annual health check-ups, safer working conditions and so on across sectors including textile, dock, plantation, IT/ITES, mines, MSMEs, audio-visual, export units, gig and platform work and others. The Labour Codes also ensure portability of benefits for migrant and platform workers, and streamline employer obligations, thereby creating a more transparent, secure, and equitable labour ecosystem.

Additionally, apart from the major welfare initiatives, the Labour Codes introduce several further reforms that strengthen worker protection and simplify compliance for employers.

The final rules under the Labour Codes by the Central and State Governments are yet to be notified. During transition period, existing labour laws will continue to remain in force.

The Press Release can be accessed at: https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2192463