The Government of India has implemented four Labour Codes, marking one of the most significant labour reforms in the country’s post-independence history. The changes, which took effect on 21st November 2025, aim to modernize India’s labour ecosystem, streamline compliance, and balance worker welfare with industrial flexibility.
Dr Pradeep Kumar Jena, Director at the Ministry of Labour & Employment, outlined the reforms and their impact, emphasizing that the Codes bring India’s labour laws into the 21st century while promoting both social security and ease of doing business.
Previously, India’s labor framework consisted of 29 central laws with 1,228 sections, 1,436 rules, 181 forms, and 84 registers, many dating back to the pre-independence era. The new Codes – Code on Wages (2019), Code on Social Security (2020), Industrial Relations Code (2020), and Occupational Safety, Health & Working Conditions (OSH) Code (2020) – consolidate the framework to 480 sections, 351 rules, 73 forms, and 8 registers, reducing complexity for both employers and employees.
Key reforms and features
Universal Minimum Wages: The Code on Wages introduces a nationally defined floor wage, extending minimum wage protections across organized and unorganized sectors.
Inspector-cum-Facilitator: Traditional labour inspectors are replaced by facilitators to guide and raise awareness, moving from a punitive “inspector raj” to a trust-based system.
Decriminalization: Minor offences are decriminalized with compounding provisions for first-time violations.
Industrial Relations Code: Introduces Fixed Term Employment (FTE), ensuring fixed-term workers receive the same benefits as permanent employees.
Requires a 14-day notice period before strikes and lockouts, encouraging dispute resolution through dialogue.
Provides statutory recognition for trade unions through Negotiating Unions/Councils and raises the threshold for prior government approval for retrenchment from 100 to 300 workers.
Social Security Code: Formally recognizes gig and platform workers for the first time, extending legal and social protections.
Establishes a Social Security Fund to support unorganized and gig workers through various welfare schemes.
OSH Code: Simplifies compliance with single registration, license, and return systems, with five-year license validity.
Promotes gender equality, enabling women to work in all sectors, including night shifts with adequate safety.
Mandates free annual health check-ups and formal appointment letters for all employees.
Raises applicability thresholds, reducing regulatory burden on smaller establishments.
Dr Jena highlighted that the Labour Codes complement India’s broader economic strategy of “Making-for-India and Making-for-the-World.” According to the India Industrial Development Report 2024-25 (ISID), the country has the potential to more than double manufacturing value-added (MVA) from US$ 717 billion in 2024 to $1.45 trillion by 2030, creating millions of direct and indirect jobs.
“The four Labour Codes are designed to ensure universal labour welfare while providing industries the flexibility to expand and innovate,” Dr Jena said, framing the reforms as a step toward a Vikshit Bharat by 2047.