Centre Implements Four New Labour Codes, Marks Biggest Overhaul of Workplace Laws in Decades

New Delhi, November 22 — The central government has officially brought all four labour codes into force, replacing 29 existing labour laws in what is being described as one of India’s most substantial labour reforms since Independence. The move aims to expand worker protections, modernise outdated regulations and make compliance easier for industries struggling under fragmented legislation.

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) became operational on Friday. Together, they set the foundation for a more transparent, uniform and worker-centric labour system across the country.

A mandatory appointment letter for every worker, universal minimum wage guarantees, time-bound wage payments, and extended social security — including for gig and platform workers — are among the most significant changes introduced through the new framework. The codes also allow women to work night shifts in all sectors, provided adequate safety measures are in place.

One of the major reforms concerns working hours, coming amid public debates over workweek length. While some business leaders recently advocated longer workweeks for boosting productivity, the new laws reaffirm an eight-hour workday and a 48-hour workweek. Any additional hours will be treated as overtime and must be compensated at twice the normal rate, with the worker’s consent.

The government had earlier held back on implementation due to protests by labour unions and political opposition, even though 20 states had already notified the codes. With the rollout now complete, employers must also ensure annual medical check-ups for workers aged 40 and above.

Officials said the reforms will significantly broaden social protection, especially for workers who were previously excluded from schemes such as the Employees’ State Insurance Corporation (ESIC). Under the new rules, hazardous-process units and establishments with fewer than 10 employees will also receive uniform ESIC coverage.

Welcoming the move, Prime Minister Narendra Modi said the reforms “empower workers and simplify compliance for businesses,” describing them as the most progressive labour-oriented changes in decades.

Labour Minister Mansukh Mandaviya said the codes ensure minimum wages for all workers, appointment letters across sectors, equal pay for equal work, social security for nearly 40 crore workers and gratuity for fixed-term employees after just one year of service. He added that hazardous-sector workers will receive 100 percent health protection.

The codes also introduce a first-ever legal definition of gig and platform workers, giving them access to social security benefits. India currently has around 12 million gig workers, and the number is expected to nearly double by 2030, according to government estimates.

Reforms also include raising the threshold for layoffs requiring prior government approval from 100 employees to 300, establishing a national floor wage, fast-track tribunals for dispute resolution, and a National Occupational Safety and Health Board to standardise safety norms nationwide.

With the codes now active, the government will start consultations for drafting detailed rules and ensuring smooth implementation.