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    Implementation of four Labour Codes: Simplification, Security, and Sustainable Growth

    December 4, 2025
    IMG

    The Government of India has led in a landmark transformation of the country’s employment law regime with the implementation of the four new Labour Codes from 21st November 2025. Consolidating 29 diverse legislations into a simplified and streamlined framework, these Codes mark a significant step towards enhancing worker protection, strengthening social security, and improving the ease of doing business. By aligning labour regulations with contemporary economic realities, the new regime aims to create a more transparent and secure labour ecosystem for employers and workers alike. A series of notifications have been issued to bring into effect the developments in India’s employment law landscape. With the implementations commencing from 21st November, the Government of India has notified India’s new labour law framework.

    The New Labour Codes streamline and consolidate 29 existing labour laws into following four comprehensive codes designed to simplify, rationalise and modernise India’s labour regulations in India. Below is the list of enactments that has been repealed and replaced through 2025 Labour Law Reforms:

    1. The Payment of Wages Act, 1936,
    2. The Minimum Wages Act, 1948,
    3. The Payment of Bonus Act, 1965,
    4. The Equal Remuneration Act, 1976,
    5. Trade Unions Act, 1926,
    6. The Industrial Employment (Standing Orders) Act, 1946,
    7. The Industrial Disputes Act, 1947,
    8. The Employee's Compensation Act, 1923,
    9. The Employees' State Insurance Act, 1948,
    10. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952,
    11. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959,
    12. The Maternity Benefit Act, 1961,
    13. The Payment of Gratuity Act, 1972,
    14. The Cine-Workers Welfare Fund Act, 1981,
    15. The Building and Other Construction Workers' Welfare Cess Act, 1996,
    16. The Unorganised Workers' Social Security Act, 2008,
    17. The Factories Act, 1948,
    18. The Plantations Labour Act, 1951,
    19. The Mines Act, 1952,
    20. The Working Journalists and other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955,
    21. The Working Journalists (Fixation of Rates of Wages) Act, 1958,
    22. The Motor Transport Workers Act, 1961,
    23. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966,
    24. The Contract Labour (Regulation and Abolition) Act, 1970,
    25. The Sales Promotion Employees (Conditions of Service) Act, 1976,
    26. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979,
    27. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981,
    28. The Dock Workers (Safety, Health and Welfare) Act, 1986,
    29. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

    The above 29 legislations have been replaced by the codes given herein below:

    1. The Code on Wages, 2019 aims to strengthen workers’ rights while promoting simplicity and uniformity in wages and bonus related compliance for employers.
    2. The Code on Social Security, 2020 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.
    3. The Industrial Relations Code, 2020 simplifies laws related to trade unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes.
    4. The Occupational Safety, Health & Working Conditions (OSHWC) Code, 2020 balances the twin objectives of safeguarding worker rights and safe working conditions, and creating a business-friendly regulatory environment.

    While the final rules under the Labour Codes by the Central and State Governments are yet to be notified, and are expected to be released shortly. During transition period, the relevant provisions of the existing labour Acts along with their respective rules, regulations, notifications, standards, schemes, will continue to remain in force.

    A comparison of the labour ecosystem, pre and post the implementation of the labour codes, is as follows:

    MAJOR HIGHLIGHTS PRE-LABOUR REFORMS, 2025 POST LABOUR REFORMS, 2025
    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 All workers including gig & platform workers to get social security coverage and 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 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.
    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. Women will get equal opportunities to earn higher incomes – in high paying job roles.
    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.

    Conclusion:

    These Codes aim to make doing business easier, improve social security, and strengthen worker rights. By introducing Single Registration, Single Licence, and Single Return, they simplify compliance and help promote employment.

    Source:

    The official notification can be accessed at the below link:

    https://labour.gov.in/sites/default/files/labour_code_eng.pdf

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