GOI makes four new Labour Codes effective from 21st November 2025
Government of India has announced that the four 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 are being made effective from 21st November 2025, rationalising 29 existing labour laws.
According to Press Release by the Ministry, modernising labour regulations, enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work, lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms.
It has been stated that many of India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different. The implementation of the four Labour Codes is expected to addresses need to align with modern global trends.
A comparison has been also given of the labour ecosystem, before and after the implementation of the Labour Codes as follows:
| Pre Labour Reforms | Post Labour Reforms | |
| Formalisation of Employment | No mandatory appointment letters | Mandatory appointment letters to all workers. Written proof will ensure transparency, job security, and fixed employment |
| Social Security Coverage | Limited Social Security Coverage | Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits |
| Minimum Wages | Minimum wages applied only to scheduled industries/ employments; large sections of workers remained uncovered | Under the Code on Wages, 2019, all workers to receive a statutory right minimum wage payment. Minimum wages and timely payment will ensure financial security |
| Preventive Healthcare | No legal requirement for employers to provide free annual health check-ups to workers | Employers must provide all workers above the age of 40 years with a free annual health check-up. Promote timely preventive healthcare culture |
| Timely Wages | No mandatory compliance for employers payment of wages. | Mandatory for employers to provide timely wages, ensuring financial stability, reducing work stress and boosting overall morale of the workers |
| ESIC coverage | ESIC coverage was limited to notified areas and specific industries; establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform mandatory ESIC coverage across India. | ESIC coverage and benefits are extended Pan-India – voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes. Social protection coverage will be expanded to all workers. |
| Compliance Burden | Multiple registrations, licenses and returns across various labour laws. | Single registration, PAN-India single license and single return. Simplified processes and reduction in Compliance Burden |
| Women workforce participation | Women’s employment in night shifts and certain occupations was restricted | Women are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures. |
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