The Centre on Friday announced that it will implement the four Labour Codes, which include the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and Occupational Safety, Health and Working Conditions Code 2020. These Codes will come into effect from November 21, 2025, and will replace 29 Central labour laws, marking a major change in the way labour rules are applied in the country.

Prime Minister Narendra Modi welcomed the decision and described it as “one of the most comprehensive labour-oriented reforms since Independence.” In a post on X, he said that the Codes “empower workers while simplifying compliance and easing business processes.” His message highlighted both the importance of worker rights and the need to make processes easier for industries.

While announcing the implementation, the Ministry of Labour and Employment said that the Codes will modernise India’s labour governance, expand social security coverage and make compliance procedures simpler for industries. The Ministry noted that many current labour rules were created before Independence and in the years that followed, and were often seen as outdated and difficult to follow.

The Ministry stated that the new framework will give statutory rights such as minimum wages, timely payment of wages and appointment letters to all workers. It said that the Codes aim to support formal employment, improve workplace safety and extend welfare benefits to sectors that were earlier outside social security, including gig and platform workers, who often lack clear protection.

Under the Code on Social Security, the Employees' State Insurance benefits will be available across India. It may apply even to establishments with only one employee involved in hazardous work. The Code also recognises gig and platform workers, and aggregators will need to contribute a portion of their revenue to a social security fund, which could help workers who do not have traditional employment.

Minimum wage entitlement has been extended to all categories of workers and a national floor wage is expected to ensure fair wage levels across States.

Women will be permitted to work night shifts in all sectors, including in mines and hazardous industries, as long as safety measures are in place and they give consent. The Codes also mandate equal wages and prohibit discrimination based on gender, including discrimination against transgender persons, which the Ministry said is meant to support a more inclusive workforce.

Fixed-term employees will receive benefits similar to permanent workers, including gratuity after one year of service, which is a major reduction from the earlier requirement of five years. Contract and migrant workers will also have stronger protections, including health coverage and the ability to carry their entitlements with them when they move.

The Occupational Safety, Health and Working Conditions Code provides for free annual health check-ups for workers above 40 years and sets national safety standards across industries. Working hours will continue to be capped at 8 to 12 hours per day and 48 hours per week.

To reduce the compliance burden, the government has introduced a single registration, single licence and single return system for establishments. Labour inspections will be replaced with an inspector cum facilitator approach that focuses on guidance and timely compliance rather than only punishment.

Dispute resolution procedures have been restructured with two-member Industrial Tribunals and quicker avenues for workers to take cases forward if conciliation fails.

During the transition period, existing rules and notifications under previous laws will remain in force until new rules are finalised. The Ministry said that further consultations will take place with stakeholders before operational guidelines are notified.

According to official estimates cited by the Ministry, social security coverage has increased from about 19 per cent of the workforce in 2015 to more than 64 per cent in 2025. The government said that the implementation of the Labour Codes is expected to deepen this expansion and bring India’s labour market closer to global standards.

The Codes have been presented as a structural reform that balances worker protections with industrial flexibility. Trade unions, however, have previously raised concerns about the possible weakening of job security and collective bargaining rights under the Industrial Relations Code, and these issues may continue to shape discussions as implementation moves forward.