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

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The Government of India has officially rolled out the four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020).

This long-awaited reform replaces 29 outdated labour laws, modernizes labour  regulations, and aligns India with global standards of worker welfare and industrial growth.

These Codes mark a major step towards building a future-ready workforce, strengthening worker protection, and supporting Aatmanirbhar Bharat.

Why the New Labour Codes Matter

For decades, India’s labour laws were fragmented, complex, and often outdated. Many were written during the 1930s–1950s—an era with different economic and employment realities.

The new Codes finally consolidate these old laws into a simplified, transparent and progressive labour framework.
They protect workers, reduce compliance burdens, and support modern forms of work—such as gig, platform, and fixed-term employment.

Before vs. After: Key Changes at a Glance

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

Safety committees at every site

Women allowed 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 saf 

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.

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