India began enforcing the new labour codes on 21 November. The reform replaces 29 earlier labour laws with a unified framework that updates wages, social security, industrial relations and workplace safety across the country. As a result, employers and workers in every sector now follow a single set of national standards.
What are the new labour codes?
The new labour codes combine 29 central labour laws into four updated regulations. These are:
- The Code on Wages, 2019
- The Industrial Relations Code, 2020
- The Code on Social Security, 2020
- The Occupational Safety, Health and Working Conditions Code, 2020
The government said the combined framework aims to simplify compliance, expand coverage and create uniform definitions across the workforce.
Code 1: Code on wages
The Code on Wages sets a universal minimum wage for all categories of workers. States must place their wage levels above a national floor wage set by the Centre. Employers must also issue wages on time, prevent unauthorised deductions and pay twice the regular rate for overtime.
In addition, equal pay rules now apply across genders, including transgender workers. The code also replaces four older Acts, including the Minimum Wages Act and the Equal Remuneration Act.
Code 2: Industrial relations code
Under the new labour codes, companies and unions adopt updated rules that change how unions are recognised and how fixed-term work operates. Fixed-term employees now receive gratuity after one year. A union with 51% membership becomes the negotiating union, while a negotiating council forms if no union crosses that threshold.
Moreover, the approval requirement for retrenchment, closure or layoffs rises from 100 to 300 workers. The definition of “worker’’ now covers journalists, sales promotion staff and supervisors earning up to ₹18,000 per month.
Code 3: Social security code
The Code on Social Security broadens ESIC coverage to the entire country. It also brings gig workers and platform workers into social security schemes through a new fund. EPF inquiries must begin within five years and finish within two years, with limited extensions.
Furthermore, accidents during travel between home and the workplace qualify for compensation. Fixed-term employees also gain gratuity after one year of service.
Code 4: Occupational safety code
Under the new labour codes, workplaces must comply with updated safety standards. Women may work at night when they consent and when employers provide the required safety arrangements.
Normal working hours stay capped at eight per day and 48 per week, and overtime requires worker consent and double pay. Free annual health check-ups and mandatory appointment letters also form part of the revised rules.
What comes next?
The government says the reform aims to strengthen worker protections and create a uniform compliance structure. However, authorities have not yet announced the timelines for further notifications or state-level adjustments.
