India Implements Unified Labour Codes to Simplify Compliance

Government of India today announced the implementation of all four consolidated Labour Codes, effective November 21, 2025.

This transformation rationalizes and replaces 29 central labour laws, many of which dated back to the pre-Independence and early post-Independence era, fundamentally modernizing the country’s labour governance framework.

The four codes now in effect are:

1. The Code on Wages, 2019
2. The Industrial Relations Code, 2020
3. The Code on Social Security, 2020
4. The Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

The Ministry of Labour & Employment emphasized that the move is designed to simplify compliance for industry, enhance worker welfare, and align India’s labour ecosystem with contemporary global standards and the vision of Aatmanirbhar Bharat.

Labour Codes Universalizing Wages and Social Security

The reforms introduce sweeping changes to improve financial security and expand the social safety net for millions of workers:

• Universal Minimum Wages: The Code on Wages guarantees a statutory right to minimum wages for all workers across all sectors, replacing the earlier fragmented system limited to specific scheduled industries.
• Social Security for Gig Workers: For the first time, the Code on Social Security formally recognizes and extends benefits like PF, ESIC, and insurance to gig and platform workers.
• Mandatory Formalisation: Appointment letters are now compulsory for all workers, strengthening transparency and formal employment.
• Enhanced Gratuity: Fixed-term employees become eligible for gratuity after just one year of service, a significant improvement over previous norms.

Workplace Safety, Gender Equality, and Compliance

The Codes also institute crucial protections related to health, safety, and gender equality.

The OSHWC Code mandates that employers provide free annual health check-ups for all workers above 40 years of age.

Furthermore, women are now permitted to work night shifts across all sectors, including factories and mines, subject to their consent and mandated safety provisions, boosting gender parity in employment opportunities.

For employers, the reforms drastically reduce the compliance burden.

A single registration, a pan-India license, and a single annual return system replace the complex web of multiple registrations and filings under the previous 29 laws.

This simplification is expected to significantly improve the “Ease of Doing Business” metric for both large corporations and MSMEs.

The government has also replaced the punitive “inspector” system with “inspector-cum-facilitators,” shifting the focus from enforcement to guidance and support.

The long-awaited implementation is set to reshape the employer-employee relationship, ensuring dignity and social justice for the workforce. 

Simultaneously, it will foster a more resilient and growth-oriented industrial environment.

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