Government Implements Four Labour Codes Key Benefits, Reforms & Impact on India’s Workforce (2025)

Implementation of the Four Labour Codes by the Government of India

Employees

In order to replace 29 antiquated labour laws, the government enacted this significant reform. India now complies with global labor protection and industrial growth standards thanks to the new labor regulations, that also improve workplace standards.

Why the New Labour Codes Matter

Over decades, the labour laws in India were diverse and intricate as well as outmoded. Most of it was authored in the 1930s 1950s an era that had other economic and employment realities.

The new Codes finally consolidate these old laws into a simplified, transparent and progressive labour framework.

A Summary of the Key Differences: Before and After

This comparison highlights how the new labor laws protect workers, reduce compliance costs, and support modern employment models such as gig work, platform roles, and fixed-term positions .

1. Formal Employment

Before: Appointment letters not mandatory.
Now: Appointment letters required for all workers, ensuring clear job terms.

2. Universal Social Security

Before: Limited coverage.
Now: PF, ESIC, insurance and welfare benefits for all, including gig and platform workers.

3. Minimum Wages for Every Worker

Before: Only for scheduled industries.
Now: Minimum wages applicable universally.

4. Preventive Healthcare

Before: No compulsory health check-ups.
Now: Free annual health check-ups for workers aged 40+.

5. Timely Wages

Before: No strict requirement.
Now: Employers must pay wages on time.

6. Women’s Participation

Before: Restrictions on night shifts and hazardous work.
Now: Women can work in all sectors, including night shifts, with safety measures.

7. ESIC Expansion

Before: Limited to notified areas.
Now: Pan-India coverage, mandatory even for 1 worker in hazardous industries.

8. Compliance Made Easy

Before: Multiple licenses and returns.
Now: Single license, single registration, single return.

How Different Sectors Benefit

1. Fixed-Term Employees

Same benefits as permanent staff.

Gratuity after one year.

Encourages direct and fair hiring.

2. Gig & Platform Workers

First-time legal recognition.

Aggregators to contribute 1–2% towards social security.

Aadhaar-based universal account for portability.

3. Contract Workers

Social security and health benefits.

Free annual health check-up.

Gratuity after one year of service.

4. Women Workers

Gender discrimination prohibited.

Equal pay for equal work.

Night shifts allowed with consent and protection measures.

Parents-in-law included in family benefits.

5. Youth Workers

Guaranteed minimum wage.

Mandatory appointment letters.

Paid leave and wage protection.

6. MSME Workers

Covered under Social Security Code.

Clean drinking water, canteens, rest areas required.

Standard working hours and double overtime.

7. Beedi & Cigar Workers

Minimum wage assurance.

Work hours capped at 48 per week.

Double wages for overtime.

Bonus after 30 days of work.

8. Plantation Workers

Mandatory safety training.

Protective equipment.

ESI benefits for workers and families.

9. Digital & Audio-Visual Media

Mandatory appointment letters.

Double wages for overtime.

Timely payments.

10. Mine Workers

Improved safety standards.

Free annual medical check-ups.

Regulated working hours.

11. Hazardous Industry Workers

Annual health check-ups.

Site safety committees.

Women can work in all roles.

12. Textile Workers

Equal wages for all migrant and local workers.

Double wages for overtime.

Claims allowed up to 3 years for pending dues.

13. IT & ITES Workers

Salary must be paid by the 7th of each month.

Women allowed in night shifts.

Strengthened grievance redressed.

14. Dock Workers

Compulsory appointment letters.

PF, pension, and insurance for all.

Employer-funded health check-ups.

15. Export Sector Workers

Gratuity and PF even for fixed-term employment.

Annual leave after 180 days.

Strict safety conditions for night shifts.

System-Wide Improvements.

National Floor Wage ensures no worker is paid below basic living standards

Gender-neutral rules, including protections for transgender workers

Inspector-cum-facilitator to encourage compliance instead of punishment

Faster dispute resolution with two-member Industrial Tribunals

National OSH Board to harmonies safe.

A Major Leap in Social Security

India’s social-security coverage has grown from 19% in 2015 to more than 64% in 2025.
The implementation of the Labour Codes is the next big leap—bringing portability, inclusion, and protection to millions more.

Workers at the margins—women, youth, migrants, unorganized and gig workers—now receive stronger protection and recognition. At the same time, businesses benefit from simplified compliance and flexibility.