New labour laws come into effect in India in 2025

The Government of India has implemented four landmark Labour Codes—the Code on Wages, 2019; the Industrial Relations Code, 2020;the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—effective November 21, 2025, rationalizing 29 existing central labour laws to usher in a new era of worker welfare, safety, and simplified compliance.

Unification of labour laws: Simplified compliance and uniformity

While the former multitude of labour laws provided necessary benefits, the sheer volume of regulations, combined with the fact that both Central and State governments held authority to create them across numerous states in India, resulted in significant compliance complexity.

This historic reform shifts the system beyond outdated, fragmented laws by mandating benefits like minimum wages for all, mandatory appointment letters, expanded social security coverage for all workers, including gig and platform workers, and equal opportunities for women, including permitting night shifts. The codes promote formal employment, ensure timely wages and preventive healthcare (free annual check-ups for workers over 40), and simplify regulatory requirements for employers through a single registration, license, and return, thereby laying the foundation for a resilient, future-ready workforce and driving labour reforms for an Aatmanirbhar Bharat.

This simplification has achieved its goal, as the four Labour Codes—rationalizing 29 existing labour laws—have been implemented with effect from November 21, 2025. This reform reduces the compliance burden by moving beyond colonial-era structures and aligning with modern global trends.

Decoding the transformation: India's new labour codes

The implementation of the four Labour Codes brings about significant changes in key aspects of India's labour ecosystem right from employment formalisation to minimum wages, to timely payments, and expansion of ESIC.

Benefits of the New Labour Codes across all sectors

The new labour rules bring in specific, significant benefits designed for different types of workers across India. Here is a simplified look at the important improvements. 

Fixed-Term Employees (FTEs)

These employees now enjoy protections and benefits that bridge the gap with permanent staff.

• They will get the same benefits as permanent workers, including leave, medical care, and social security.
• They qualify for Gratuity (a lump sum payment) after just one year of continuous service, instead of having to wait five years.
• They must be paid equal wages as permanent staff, increasing their income and protection.

Gig & Platform Workers

For the first time, this rapidly growing segment of the workforce is legally recognized and provided with a safety net.

• Terms like 'Gig work', 'Platform work', and 'Aggregators' (the companies employing them) are officially defined for the first time.
• Aggregators must contribute 1–2% of their yearly earnings (revenue), with a limit of 5% of the total amount paid to these workers, to fund their welfare.
• They will get an Aadhaar-linked Universal Account Number (UAN). This ensures that welfare benefits are easy to access, can be used anywhere, and are available across all states, even if the workers migrate.

Women Workers

The new codes explicitly prohibit gender discrimination and significantly enhance opportunities and safety for women.

• It is now legally forbidden to discriminate based on gender, and employers must ensure equal pay for equal work.
• Women are allowed to work night shifts and in all types of work (even dangerous jobs like underground mining and with heavy machinery). This is only allowed if they agree, and the company provides mandatory safety measures.
• The definition of 'Family' for female employees is expanded to include parents-in-law, increasing who they can cover as dependents.
• There must be mandatory women's representation on grievance redressal committees.

MSME Workers and Youth Workers‍

These workers, essential to the economy's backbone and future, gain core protections and security.

• MSME Workers (those in Micro, Small, and Medium Enterprises) are covered under the Social Security Code, 2020 (eligibility based on employee count). They are guaranteed minimum wage and access to facilities like canteens, drinking water, and rest areas, along with standard working hours and paid leave.
• Youth Workers are guaranteed a minimum wage and mandatory appointment letters, promoting social security and formal employment. Exploitation is prohibited, including the mandatory payment of wages during leave.

Beedi & Cigar Workers and Mine Workers

These workers in traditionally rigorous or hazardous environments receive protection for their health and working hours.

• The working hours for these workers are limited to 8 to 12 hours per day and a maximum of 48 hours per week. Any overtime work beyond prescribed hours must be agreed upon and paid at least double the normal wage rate.
• For Mine Workers, certain commuting accidents are now treated as employment-related accidents, subject to specific conditions.

Plantation Workers 

These workers are now brought under the ambit of modern safety and social security codes.

• Plantation workers are now covered under the OSHWC Code (safety) and the Social Security Code.
• The workers and their families get full ESI medical facilities, and their children are guaranteed education facilities.
• Mandatory safety training and protective equipment are now required for handling chemicals.

Audio-Visual & Digital Media Workers

Journalists, artists, and stunt persons in this sector now receive formal recognition and full labour benefits.

• The workers receive full benefits, including mandatory appointment letters clearly stating their designation and wages, and timely payment of wages.
• Overtime work must be consent-based and paid at least double the normal wage rate.

Hazardous Industry Workers and Dock Workers 

Safety and health are prioritized for employees in these high-risk sectors.

• All workers will receive free annual health check-ups.
• Mandatory safety committees at each site ensure on-site safety monitoring and safe handling of hazardous chemicals.
• Dock workers now get formal recognition, legal protection, and mandatory medical and sanitary facilities.

IT & ITES Workers ️

Employees in the information technology sector receive clarity on wage payment and gender equality.

• Their salary release is mandatory by the 7th of every month, ensuring transparency and trust.
• They get equal pay for equal work, and women are provided the facility to work night shifts to earn higher wages.

System-wide reforms

Beyond these specific groups, the Labour Codes bring in major improvements for the whole system:

National Floor Wage

• A National Floor Wage will be established. This means no worker in the country can be paid below this set minimum living standard.

Gender Neutrality

• The system now promotes gender-neutral pay and job opportunities, explicitly prohibiting discrimination against any person, including transgender individuals.

Inspection System

• The new Inspector-cum-Facilitator system is introduced. Instead of focusing on punishment, enforcement now prioritizes guidance, creating awareness, and helping businesses achieve compliance.

Dispute Resolution

• Solving conflicts will be faster and more predictable. This is achieved through two-member Industrial Tribunals and the option for workers to go to a tribunal directly after conciliation efforts.

Simplified Compliance

• Companies now only need a single registration, single license, and single return for safety and working-conditions requirements. This replaces multiple overlapping filings, easing the regulatory burden.

Safety Standards

• A National OSH Board will be established. Its job is to set standardized and harmonized safety and health standards across all sectors.

Step towards a protected and resilient future

This implementation of these new labour laws marks the next major step in dramatically expanding social security coverage in India, which has already risen from about 19% of the workforce in 2015 to more than 64% in 2025.

By placing workers—especially women, youth, unorganized, gig, and migrant workers—firmly at the center of labour governance, and simultaneously reducing the compliance burden for industry, the codes aim to boost employment, skilling, and industry growth. This transformation is designed to lay the foundation for a protected, future-ready workforce and resilient industries, driving labour reforms for an Aatmanirbhar Bharat (Self-Reliant India).

It’s clear that these reforms are about more than just simplification; they're about ensuring social justice and a foundation of protection and dignity for every worker in the country.