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The Central Government has notified the four new Labour Codes enacted in India for their implementation on 21November, 2025. These codes were enacted in 2019-20 and aim to replace or consolidate 29 erstwhile historical labour legislations. the main objective of these Labour Codes is to ensure social security, safety and labour welfare. The new codes are:
Code | Enacted |
Code on Wages | 2019 |
Code on Social Security | 2020 |
Code on Occupational Safety, Health and Working Conditions | 2020 |
Code on Industrial Relations | 2020 |
The Government has consolidated 29 labour laws into four comprehensive Labour Codes. The four Labour Codes include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, the Occupational Safety, Health and Working Conditions Code, 2020 and Code on Industrial Relations, 2020. This historic reform streamlines compliance, modernizes outdated provisions and creates a simplified, efficient framework that promotes ease of doing business while safeguarding workers’ rights and welfare.
The codification of 29 existing labour laws into four Labour Codes was undertaken to address long-standing challenges and make the system more efficient and contemporary. The codification aims to enhance ease of doing business, promote employment generation, ensure safety, health, social & wage security for every worker.
The key reasons behind these reforms, inter alia, include:
- Simplifying compliance: Multiplicity of laws leads to difficulty in compliance.
- Streamlining enforcement: Multiplicity of authorities in different labour laws led to complexity and difficulty in enforcement.
- Modernizing outdated laws: Most labour legislations were framed during the pre-Independence era, necessitating alignment with today’s economic realities and technological advancements.
New Codes
The Code of Wages, 2019
The Code on Wages, 2019 seeks to simplify, consolidate, and rationalize the provisions of 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. It aims to strengthen workers’ rights while promoting simplicity and uniformity inwage-related compliance for employers.
The Industrial Relations Code, 2020
The Industrial Relations Code (IR Code) has been prepared after amalgamating, simplifying and rationalizing the relevant provisions of the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947. The Code acknowledges the fact that survival of worker depends upon survival of industry. In this backdrop, it simplifies laws related to trade unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes.
The Code on Social Security, 2020
The Code on Social Security incorporates existing nine Social Security Acts viz; The Employees Compensation Act,1923; The Employees State Insurance Act, 1948; The Employees Provident Funds and Miscellaneous Provisions Act, 1952; The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959; The Maternity Benefit Act,1961; The Payment of Gratuity Act, 1972; The Cine-Workers Welfare Fund Act, 1981; The Building and Other Construction Workers Welfare Cess Act, 1996 and; The Unorganised Workers Social Security Act, 2008. The Code extends social security to all workers- including unorganized, gig, and platform workers-covering life, health, maternity, and provident fund benefits, while introducing digital systems and facilitator-based compliance for greater efficiency.
The Occupational Safety, Health and Working Conditions Code 2020
The Code has been drafted after amalgamation, simplification and rationalization of the relevant provisions of the 13 Central Labour Acts- The Factories Act, 1948; The Plantations Labour Act, 1951; The Mines Act, 1952; The Working Journalists and other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955; The Working Journalists (Fixation of Rates of Wages) Act, 1958; The Motor Transport Workers Act, 1961; The Beedi and Cigar Workers (Conditions of Employment) Act, 1966; The Contract Labour (Regulation and Abolition) Act, 1970;The Sales Promotion Employees (Conditions of Service) Act, 1976; The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981; The Dock Workers (Safety, Health and Welfare) Act, 1986 and; The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.
The Code balances the twin objectives of safeguarding worker rights and safe working conditions, and creating a business-friendly regulatory environment. This will spur economic growth and employment thereby, making India’s labour market more efficient, fair, and future-ready.
New Codes v. Old Laws
Labour Reforms: Then and Now
S.No. | Subject matter | Then | Now |
1. | Employment formalization | No requirement | Issue of mandatory appointment letter to all works |
2. | Minimums wages | Minimum wages applied to scheduled industries only | Statutory minimum wages applicable to all workers including women |
3. | Social security | Conditional and limited coverage | Covers all workers including e-com / gig workers |
4. | Timely payment of wages | No such mandate | Mandatory for employers
|
5. | Preventive health care | No such mandate | Free annual health check mandatory for all workers above 40 years age |
6. | Gratuity | Only after 5 years of continuous service | After one year for fixed term employment |
7. | ESIC coverage | Very limited | To cover workers on all India basis |
8. | Registration | Multiple | Single |
9. | Women work force | With restrictions | Also permitted to work at night and in all types of works |
10. | Filing of returns | Multiple | Single |
11. | Compliance cost | Higher | Claimed to be lower |
12. | E-com / gig workers / aggregators | Did not exist | Now covered with other workers |
13. | Respect / dignity / safety | Not much in law | Codes are now focused |
India’s new Labour Codes make labour laws simpler, fairer, and more in tune with today’s work environment. They protect workers’ rights, improve safety and social security, make it easier for businesses to comply with rules, and create more job opportunities in a growing economy. The enacted Labour Codes bring out following transformations in the labour market:
- Align labour laws with the current economic scenarioby modernizing regulations in accordance with evolving work patterns, technological advancements, and economic realities.
- Ensure the safety, health, social security, and wage security of every workerthrough a unified and comprehensive framework encompassing all categories of workers.
- Enhance employment opportunitiesby simplifying procedures and fostering a business-friendly environment that promotes investment and economic growth.
- Facilitate easier complianceby introducing uniform definitions, single registration, single return, and simplified online systems for seamless adherence.
- Encourage the use of technologyin the administration of labour laws through digital registration, licensing, and inspections for improved efficiency and transparency.
- Strengthen transparency and accountabilityin enforcement through online, risk-based inspection mechanisms and objective implementation processes.
- Achieve simplification, harmonization, and rationalizationof the regulatory framework by consolidating multiple labour laws into four comprehensive Codes, ensuring consistency and reducing administrative burden.