New Labour Codes 2025: The Government of India has stated that all four New Labour Codes, namely Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and OSHWC Code (2020) will be enforced with effect from 21 November 2025. All the four labour codes will subsume a total of 29 old labour laws, and will replace the old laws with a modern and simple system. The labour reforms will enhance the welfare of workers and ease the compliance burden of existing laws, and bring the country’s labour market in line with the needs of a new economy. This is a significant move towards a future-ready workforce and is another step in strengthening the idea of Aatmanirbhar Bharat.

What are the New Labour Codes 2025?

The four New Labour Codes are Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). The four Codes replace 29 old labour laws, and simplify them to create a single unified, modern, easily understandable, and easy to implement framework.

Key Features of the Four Labour Codes 2025

The Four Labour Codes are significant reforms in the Indian labour system, which enhance workers’ rights, extend social security, and ease compliance for employers. They aim to ensure safer workplaces, fair wages, and equal opportunities for all workers, including women, gig workers, and migrant workers. 

Universal Social Security and Expanded Coverage 

Labour Codes extend social security to all workers in India, including those previously uncovered. Gig workers, platform workers and migrant workers are now legally recognized. ESIC facilities will expand to all districts, with Aadhaar-linked UAN enabling benefit portability.

Wages, Minimum Pay and Timely Payment 

Codes mandate every worker be paid minimum wages and salary punctually. A National Floor Wage ensures a minimum standard income for all workers across states. The wage structure has been revised to boost basic pay and strengthen PF and gratuity.

Women Workers’ Rights and Safety 

Women gain access to more job opportunities under stringent safety regulations. With consent, women can work night shifts and in mines and heavy machinery areas. Equal pay for equal work is guaranteed. Free annual health check-ups for workers above 40 years.

Fixed Term Employment (FTE) 

The rules governing fixed-term employment make it more secure and stable. FTE workers will receive the same wages, leave and medical benefits as permanent staff. FTE becomes eligible for gratuity after one year of continuous service.

Simplified Compliance and Ease of Doing Business 

Labour Codes reduce paperwork and simplify compliance for employers. A single registration, single licence and single return will replace multiple forms. Faster dispute resolution and national safety standards will facilitate smooth industry operations.

Why were the New Labour Codes needed?

India’s existing labour laws were excessively numerous, complicated and outdated, and this created high compliance burden for industries and constrained their ability to create more jobs. 

• Social security cover was also not available to many workers, including new categories of workers such as gig workers, platform workers, MSME workers, and migrant workers. 
• States were taking their own initiatives to reform labour laws, which had started creating different rules for different parts of the country. 
• The four new Labour Codes address all these issues by simplifying the laws, bringing in more workers under the ambit of social security and simplifying doing business norms.

Comparison of the Labour Ecosystem Before and After Labour Codes

A comparison of the labour ecosystem, before and after the implementation of the Labour Codes, is as follows:

Benefits of New Labour Codes 2025

The new Labour Codes seek to make the labour system in India more modern, to provide social security, fair wages and safer working conditions for workers, and to reduce the compliance burden for employers. The new Codes seek to ensure more equality, transparency and better protection for all workers.

1. Fixed-Term Employees (FTE) 

Fixed-term employees (FTE) will now have access to almost all the rights and benefits of permanent employees. The changes provide stability in employment and discourage over-dependence on contractors. The reforms give workers better security and income protection.

2. Gig & Platform Workers 

Gig and platform workers, who work through apps and digital platforms, are now formally recognised. This gives delivery workers, drivers, and online service providers protection and welfare benefits. The earnings and rights of these workers become more secure.

3. Contract Workers 

Contract workers will now have better social security and health protection. The reforms reduce exploitation and ensure contract employment becomes fair and transparent. Workers receive benefits similar to permanent employees. 

4. Women Workers 

Women workers get stronger safeguards, equal opportunities, and better working conditions. They can now work in all sectors, including previously restricted ones, with necessary safety measures. Gender equality in the workplace is strengthened. 

5. Youth Workers 

Reforms aim to provide young workers fair wages, formal employment status, and better working conditions. This helps fresh workforce entrants build secure employment histories and ensures their basic rights.

6. MSME Workers 

MSME workers receive enhanced protection and workplace facilities. These reforms will help small businesses improve work quality while ensuring workers are treated fairly. Payment and working hour rules will now be standardised.

7. Beedi & Cigar Workers 

Beedi and cigar workers, typically from unorganised industries, now have stronger rights. Working hours, wage rules, and bonus benefits are defined clearly to protect them from exploitation.

8. Plantation Workers

Plantation workers and their families will now have better safety, medical care, and education support. Safety training and protective equipment become mandatory to reduce workplace hazards.

9. Audio-Visual & Digital Media Workers 

Workers in digital media, film, TV, and online platforms now receive formal recognition and workplace protection. Contracts, wages, and job roles will be clearly defined for them.

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