India’s Four Labour Codes Now in Effect: What Employers Need to Know (21 Nov 2025)
India has entered a new era of labour regulation. As of 21 November 2025, the Ministry of Labour & Employment has officially implemented all four Labour Codes, consolidating 29 existing laws into a modern framework designed for today’s workforce and business landscape.
These reforms simplify compliance, strengthen worker protections, and align India more closely with global labour standards.
The Four Labour Codes at a Glance
1. Code on Wages (2019)
Standardizes minimum wages and ensures timely payment for all employees.
2. Industrial Relations Code (2020)
Improves dispute resolution systems, strengthens worker rights, and enhances industrial harmony.
3. Social Security Code (2020)
Expands PF, ESIC, insurance coverage — notably extending benefits to gig and platform workers.
4. Occupational Safety, Health & Working Conditions Code (2020)
Introduces stronger workplace safety norms, working hour standards, and mandatory health checks.
Why These Reforms Matter
The new codes deliver transformational benefits to employers and employees alike:
- Simplified Compliance: Single registration and fewer returns significantly reduce administrative burden.
- Stronger Social Security Net: PF, ESIC, and insurance now cover a wider workforce, including gig and platform workers.
- Safer, More Equitable Workplaces: Mandatory health checks, safer working conditions, and structured working-hour norms.
- Global Alignment: Modern, unified standards elevate India’s competitiveness and employer credibility.
Key Highlights for Employers
✔ Appointment letters mandatory for all employees ✔ Universal minimum wage framework ✔ Gig and platform workers included in social security schemes ✔ Free annual health check-ups for employees aged 40+ ✔ Women can work night shifts with required safeguards ✔ Fixed-term employees receive full parity and gratuity after one year ✔ Single registration + consolidated returns for easier compliance ✔ Faster, structured dispute resolution mechanisms
What Companies Should Do Now
To stay compliant and ensure smooth adoption of the new labour framework, organisations must:
1. Review & Update HR Policies
Revise policies on wages, working hours, leave, contracts, and safety standards.
2. Communicate Changes to Employees
Share clear internal updates on rights, benefits, and process changes.
3. Train Managers & HR Teams
Ensure operational teams fully understand the new rules and implications.
4. Audit Parity & Social Security Coverage
Check wage structures, parity for fixed-term employees, and coverage under PF/ESIC.
Important Note
Some older provisions may continue temporarily until all rules are fully operationalised by states and central authorities.