India has entered a significant new era in labour reform with the official nationwide implementation of the four consolidated Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health & Working Conditions Code (2020).
These reforms, effective November 21, 2025, merge 29 previous central labour laws to eliminate regulatory fragmentation, enhance worker welfare, and create a simplified, uniform compliance structure across the country.
Why These New Labour Codes Matter
For decades, India’s labour ecosystem operated under multiple overlapping regulations issued separately by both Central and State authorities. While they offered necessary protections, the sheer number of laws caused complex compliance requirements, administrative burden, and difficulty in adaptation for growing industries.
The newly implemented Labour Codes transform the system through uniform regulations, modern protections for all categories of workers, and streamlined processes for employers including single registration, single license, and single return filing applicable PAN-India.
These codes aim to:
- Promote formalization of employment
- Guarantee minimum wages and timely salary payments
- Expand social security access to all workers, including gig and platform workers
- Strengthen workplace safety, flexibility, and gender equality
- Support a future-ready workforce, aligning with global labour standards and contributing to Aatmanirbhar Bharat
Major Reforms Introduced Through the Labour Codes
The introduction of the four codes marks a shift to simplified, structured labour governance. Here’s a breakdown of the key transformations:
1. Formal Employment
| Before | Now | Key Benefits |
| No mandatory requirement for appointment letters | Written appointment letters required for every worker | Legal transparency, job security & documented employment proof |
2. Expanded Social Security for All Workers
- Earlier, only certain types of workers were covered.
- Now, all workers, including gig and platform workers, fall under social security coverage.
- Access to PF, ESIC and insurance benefits becomes a universal right.
3. Minimum Wage for Every Worker
- Previously limited to specific scheduled industries.
- Now applies to all workers nationwide.
- Wages must align with the National Floor Wage determined by the Central Government.
- Ensures income stability and a safeguarded standard of living.
4. Preventive Healthcare Requirements
| Before | Now |
| No mandatory employer responsibility | Employers must provide free annual medical checkups to all workers above 40 |
5. Guaranteed Timely Salary
| Before | Now |
| No legal enforcement for wage deadline | Mandatory timeline — e.g., IT & ITES salaries must be paid by 7th of every month |
6. Increased Workforce Participation for Women
- Permission to work night shifts and in all job categories
- Equal pay for equal work
- Safety measures and consent mandatory
- Expanded family definition to include parents-in-law
- Mandatory women’s representation in grievance committees
7. ESIC Coverage Expansion
| Before | Now |
| Limited to notified zones and industries | Pan-India coverage |
| Establishments under 10 employees excluded | Voluntary for <10 employees; mandatory for hazardous industries even with one employee |
8. Reduced Compliance Burden
A major shift from multiple filings to:
- Single registration
- Single license applicable PAN-India
- Single return submission
Benefits of the New Labour Codes Across Worker Categories
Fixed-Term Employees
- Equal benefits comparable to permanent staff
- Gratuity after 1 year of continuous service, instead of 5
- Equal wage policies
Gig & Platform Workers
- Official recognition & welfare provisions
- Aggregators required to contribute 1-2% of annual revenue (up to 5% of payouts) to welfare funds
- Universal Aadhaar-linked UAN ensuring portability of benefits
Women Workers
- No job category restrictions, including mining and heavy machinery
- Mandatory safety protocols for night shifts
- Mandatory representation in grievance forums
MSME & Youth Workers
- Minimum wages, structured working hours, safe facilities
- Mandatory appointment letters & wage payment safeguards
- Paid leave rights and anti-exploitation protection
Beedi, Cigar & Mine Workers
- Limited working hours: 8–12 hours/day, 48 hours/week maximum
- Overtime paid at double rate
- Specific commuting incidents treated as employment-related accidents
Plantation Workers
- Full ESIC medical coverage
- Safety training & chemical-handling protection equipment
- Education support for worker families
Audio-Visual & Digital Media Workers
- Legal recognition and job security
- Mandatory appointment letters
- Timely wages and consent-based overtime at double pay
Hazardous Industry & Dock Workers
- Free annual medical examination
- Mandatory safety committees at workplaces
- Formal right to medical and sanitary facilities
IT & ITES Employees
- Mandatory salary release by the 7th
- Enforcement of equal pay and night-shift flexibility for women
System-Wide Structural Upgrades
| Reform | Impact |
| National Floor Wage | Minimum guaranteed income for all |
| Gender-Neutral Labour Policies | Protects gender and transgender equal rights |
| Inspector-cum-Facilitator Model | Focus on guidance instead of penalties |
| Faster Dispute Resolution | Industrial tribunals ensure quicker resolution |
| National OSH Board | Unified safety and workplace standards |
A Step Toward a More Secure and Progressive Workforce
As the new Labour Codes reshape the compliance landscape, organizations must update their HR, payroll, employee documentation, and statutory systems to stay compliant. At KALKI – The Innovation Luminary, we help businesses seamlessly transition into this new framework with:
🔹 End-to-End Labour Code Compliance Setup
- Implementation of updated minimum wage configurations
- Alignment of wage components as per statutory requirements (Basic, HRA, allowances, PF, ESI, etc.)
- Support for latest ESIC and PF eligibility & contribution rules
🔹 Payroll System Modernization
- Payroll restructuring for timely salary release compliance
- Automation of compliance filings with Zoho Payroll and integrated HR systems
- Real-time statutory deductions and reporting
🔹 Documentation & Record-Keeping Setup
- Creation of legally compliant appointment letters for all worker categories
- Standardized workplace policies and safety compliance documents
- Digital workforce records and employee onboarding workflows
🔹 Workforce Policies for Equality, Safety & Transparency
- Night-shift compliance and safety measures for women employees
- Grievance redressal and equal-opportunity policy structures
- Preventive health compliance including annual check-ups tracking for eligible workers
🔹 Guidance for MSMEs, Gig Worker Platforms & High-Growth Industries
- Advisory for scaling gig & platform worker compliance
- Specialized support for IT & ITES, manufacturing, and hazardous-process industries
⭐ Why Partner with KALKI
- Certified Zoho Finance & HR implementation experts
- 30+ successful deployments across India, Canada, and Europe
- Compliance-driven automation for long-term scalability
- Tailored solutions ensuring zero disruption to operations
Start Your Compliance Transformation
The new Labour Codes offer a chance not just to comply — but to modernize employer-employee trust, transparency, and productivity.
Let’s make your organization future-ready.
