Ministry of Labour & Employment Notifies Final Central Rules under Labour Codes & Model Standing Orders, 2026

In a significant step towards the implementation of India’s labour law reforms, the Ministry of Labour & Employment (“MoL&E”) has notified the final rules under the following Labour Codes and Model Standing Orders:

What was notified & when

All the aforesaid rules have come into force from their respective dates of publication.

Key Highlights

The newly notified rules operationalise the Labour Codes and replace numerous legacy labour law rules with a unified compliance framework. The reforms aim to simplify labour law administration through consolidation, digitisation and standardisation of compliance requirements.

Some of the key developments include:

1. Greater Digitisation of Labour Compliance

A common theme across all four Codes is the shift towards electronic governance. Registrations, filings, notices, maintenance of records, and statutory returns are increasingly required to be completed through designated online portals and digital systems.

This marks a significant move away from fragmented paper-based compliance processes.

2. Common Registration under the OSH Code

The OSH Central Rules introduce a unified registration mechanism through the Shram Suvidha Portal or any other notified portal. Registration certificates are required to be issued electronically within seven days of application. Where no action is taken within the prescribed period, registration is deemed to have been granted automatically.

The rules also mandate the following:

• Issuance of appointment letters to all employees;
• Annual medical examinations for workers above 40 years of age in specified sectors; and
• Enhanced obligations relating to workplace health, safety, and welfare.

3. Key Changes under the Code on Wages

The Code on Wages Rules consolidate the framework relating to minimum wages, payment of wages, bonus and equal remuneration. Certain provisions are likely to have immediate payroll implications, including:

• Codified wage calculation methodology for hourly, daily and monthly wages;
• Restriction on wage deductions, which generally cannot exceed 50% of wages in a wage period;
• Mandatory maintenance of prescribed registers and wage records; and
• Electronic filing of statutory returns.

Employers engaging contract labour should also note that principal employers may face liability in cases where contractors fail to discharge certain statutory payment obligations.

4. Industrial Relations Framework Streamlined

The Industrial Relations Rules establish a consolidated framework for industrial dispute resolution, conciliation proceedings, settlements, and related compliance requirements. Organizations should review their existing grievance handling mechanisms, disciplinary procedures, and industrial relations practices to ensure alignment with the new framework.

5. Model Standing Orders Introduce Standardised Workforce Classification

The Government has also notified the Model Standing Orders, 2026, applicable to industrial establishments in the mining, manufacturing, and services sectors. The Model Standing Orders introduce standardised categories of workers, including:

• Permanent
• Temporary
• Probationer
• Apprentice
• Fixed-term
• Casual

The framework also provides guidance on service conditions, disciplinary procedures, misconduct provisions, and workforce management practices. A particularly important development is the formal recognition of fixed-term employment, which may have implications for employee benefits and workforce planning.

6. Consolidated Social Security Framework

The Social Security Rules bring together provisions relating to

• Employees’ Provident Fund (EPF);
• Employees’ State Insurance (ESI);
• Gratuity;
• Maternity Benefits;
• Employee Compensation;
• Building and Construction Workers’ Welfare; and
• Unorganised and gig workers.

The continued emphasis on the statutory definition of “wages” remains one of the most significant aspects of the reforms. The revised framework may impact:

• Provident fund contributions;
• Gratuity liabilities;
• Overtime calculations; and
• Overall compensation structuring.

Organisations should evaluate existing salary structures to assess any resulting compliance or cost implications.

Employer Action Points

In light of the implementation of the Labour Codes, employers should consider reviewing the following:

• HR policies and employee handbooks;
• Employment contracts and appointment letter formats;
• Standing orders and disciplinary frameworks;
• Salary and compensation structures;
• PF, ESI and gratuity exposure;
• Contractor and gig workforce compliance arrangements;
• Workplace health and safety practices; and
• Digital labour law compliance systems and record-keeping processes.

How MBG Can Help

MBG can assist organisations in assessing the impact of the newly notified Labour Code framework and ensuring compliance readiness. Our services include:

• Labour Code impact assessments based on business operations and workforce structure;
• Review of compensation and payroll frameworks against the revised definition of wages;
• Review and updating of employment contracts, HR policies, appointment letters and standing orders;
• Advisory on contractor engagement, social security obligations and workforce compliance requirements;
• Health and safety compliance reviews; and
• Assistance with labour law digitisation and compliance management processes.

Source: Gazette Notifications dated 8 May 2026 and 9 May 2026, issued by the Ministry of Labour & Employment, Government of India.