GoI Implements Four New Labour Codes from November 21, 2025

In November 2025, the Government of India (GoI) announced the enforcement of four major labour codes, the Code on Wages (2019), the Industrial Relations(IR) Code (2020), the Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions(OSHWC) Code (2020).

• These labour codes come into effect from 21 November 2025, replacing and consolidating 29 existing labour laws into a unified framework.
• The Code on Wages, 2019 was officially notified on 8 August 2019, while the other three labour codes were notified later on 29 September 2020.

Code of Wages, 2019:

Overview: This code consolidates the four existing laws – The Payment of Wages Act, 1936; The Minimum Wages Act, 1948; The Payment of Bonus Act, 1965; and The Equal Remuneration Act, 1976.

Minimum Wages: The code establishes a statutory right to minimum wages for all employees across both organised and unorganised sectors.

Floor Wage: No state can fix minimum wages below this level, ensuring uniformity and adequacy nationwide.

Wage Fixation: Appropriate Governments will determine minimum wages considering workers’ skill levels, geographic areas, and job conditions.

Gender Equality: Employers shall not discriminate on the basis of gender, including transgender identity.

Wage Payment: Rules preventing delayed wages and unauthorised deductions will now apply to every employee, instead of being limited to those earning under Rs 24,000 per month.

Overtime Compensation: Employers must pay all employees overtime wages at least twice the normal rate for any work done beyond the regular working hours.

Industrial Relations(IR) Code, 2020

Fixed Term Employment (FTE): Permits fixed-term contracts that offer the same wages and benefits as permanent employees, with gratuity eligibility after one year.

Re-skilling Fund: A fund has been created to train retrenched employees, financed by a contribution equal to 15 days’ wages per retrenched worker.

Trade Union Recognition: A union with 51% membership is recognised as the Negotiating Union; if no union meets this threshold, a Negotiating Council is formed from unions with at least 20% membership.

Expanded Worker Definition: Covers sales promotion staff, journalists, and supervisory employees earning up to Rs 18,000/month.

Higher Threshold for Lay-off/Retrenchment/Closure: Approval limit raised from 100 to 300 workers.

Women’s Representation: Ensures proportional representation of women in grievance committees for gender-sensitive redressal.

Work-from-Home Provision: Permitted in service sectors by mutual consent, improving flexibility.

Direct Tribunal Access: Parties may approach tribunals directly after failed conciliation within 90 days.

Notice for Strikes/Lockouts: Mandatory 14-day notice for all establishments to promote dialogue and minimize disruptions.

Code on Social Security, 2020

Coverage: The Code extends social security to all workers– including unorganized, gig, and platform workers-covering life, health, maternity, and provident fund benefits.

Expanded ESIS(Employee State Insurance Scheme): ESIS now applies pan-India, eliminating the criteria of “notified areas.” Establishments with fewer than 10 employees may voluntarily opt in.

Time-bound EPF (Employees’ Provident Fund) Inquiries: A five-year limit has been set for initiating EPF inquiries and recovery proceedings, to be completed within two years (extendable by one).

• Employers appealing EPFO orders now need to deposit only 25% of the assessed amount.

Inclusion of Gig and Platform Workers: New definitions are included- “aggregator,” “gig worker,” and “platform worker” to enable social security coverage.

• Aggregators are required to contribute 1–2% of their annual turnover toward social security, with the contribution capped at 5% of the payments made to such workers.

Social Security Fund: A dedicated fund to finance schemes for unorganised, gig, and platform workers, covering life, disability, health, and old-age benefits has been proposed.

Uniform Definition of Wages: “Wages” now include basic pay, dearness allowance, and retaining allowance; 50% of the total remuneration.

Gratuity for Fixed-Term Employees: Fixed-term employees become eligible for gratuity after one year of continuous service (earlier five years).

Compounding of Offences: First-time offences punishable with fines are compoundable- for fine-only: 50% of maximum fine and for fine/imprisonment cases: 75% of maximum fine- reducing litigation and improving ease of doing business.

Occupational Safety, Health and Working Conditions(OSHWC) Code, 2020:

Objectives: This code has twin objectives:

• Safeguarding worker rights and safe working conditions
• Creating a business-friendly regulatory environment.

Unified Registration: A uniform threshold of 10 employees is set for electronic registration.

Formalization through Appointment Letters: Appointment letters detailing job roles, wages, and social security benefits will be issued to workers, ensuring greater transparency and accountability in employment.

Wider Definition of Workers: The definition of inter-state migrant workers (ISMW) now covers workers employed directly, through contractors, or migrate on their own.

• Benefits include: a lump-sum annual travel allowance to native place once in 12 months and portability of public distribution system and social security benefits across states along with access to a toll-free helpline.
• The terms “working journalists” and “cine workers” now also cover employees working in electronic media and all types of audio-visual content production.

Women’s Employment: Women can work in all types of establishments and during night hours (before 6AM, beyond 7PM) with consent and safety measures, fostering equality and inclusion.

Victim Compensation: Courts can direct at least 50% of fines imposed on offenders to be paid as compensation to victims or their legal heirs in case of injury or death.

Contract Labour Reform: Applicability threshold has been raised from 20 to 50 contract workers.

Safety Committees: Establishments with 500 or more workers will form safety committees with employer-worker representation.

Working Hours & Overtime: Normal working hours capped at 8 hours/day and 48 hours/week. Overtime allowed only with worker consent and paid at twice the regular rate.

Revised Factory Thresholds: Applicability increased from 10 to 20 workers (with power) and 20 to 40 workers (without power), reducing compliance burden for small units.

Health Benefit : Employees will receive free annual health check-ups.

Note: A retrenched employee is one whose job is terminated by their employer for reasons unrelated to their performance, such as cost-cutting, restructuring, or downsizing

About Ministry of Labour and Employment (MoL&E):
Union Minister – Dr Mansukh Mandaviya (Constituency – Porbandar, Gujarat)
Minister of State (MoS) – Shobha Karandlaje (Constituency – Bangalore North, Karnataka)