What Happened
- The Labour and Employment Ministry has prepared a list of nearly two dozen compliances for employers under the four new labour codes
- The compliances are categorised into foundational, monthly, annual, and event-based requirements
- The four labour codes, which replaced 29 old labour laws, came into force on November 21, 2025
- However, detailed Central and State rules required for full implementation are still pending, with final rules expected by April 1, 2026
- Employers must ensure timely wage payments, social security contributions, maintenance of records, and adherence to safety regulations
Static Topic Bridges
The Four Labour Codes — Consolidation of 29 Laws
India's labour law reform consolidated 29 central labour laws into four comprehensive codes. The Code on Wages, 2019 subsumes the Payment of Wages Act (1936), Minimum Wages Act (1948), Payment of Bonus Act (1965), and Equal Remuneration Act (1976). The Industrial Relations Code, 2020 replaces the Trade Unions Act (1926), Industrial Employment (Standing Orders) Act (1946), and Industrial Disputes Act (1947). The Code on Social Security, 2020 subsumes nine laws including the EPF Act (1952), ESI Act (1948), and Maternity Benefit Act (1961). The Occupational Safety, Health and Working Conditions Code, 2020 consolidates 13 laws including the Factories Act (1948) and Contract Labour Act (1970).
- All four codes received Presidential assent in 2019-2020 but implementation was delayed for over five years
- Effective date: November 21, 2025
- The codes apply to both organised and unorganised sector workers
- The Code on Social Security for the first time extends coverage to gig workers and platform workers
- Key wage reform: Basic pay + DA must constitute at least 50% of total compensation (Code on Wages)
Connection to this news: The compliance list released by the Ministry operationalises the codes by specifying exactly what employers must do — transforming statutory provisions into actionable compliance requirements.
Key Threshold-Based Reforms in Labour Codes
The labour codes introduce differentiated compliance requirements based on establishment size, a significant departure from the earlier regime where multiple laws had different thresholds. The Industrial Relations Code raises the threshold for prior government approval for retrenchment, layoffs, and closures from 100 workers to 300 workers, giving larger establishments more flexibility. Standing orders are now mandatory for establishments with 300+ workers (earlier 100+). Contract labour regulations apply to establishments with 50+ workers.
- ESIC coverage: Establishments with 10+ employees
- EPF coverage: Establishments with 20+ workers
- Standing orders: 300+ employees (raised from 100)
- Government permission for layoffs/retrenchment/closure: 300+ workers (raised from 100)
- Grievance Redressal Committee: Mandatory for establishments with 20+ workers
- Fixed-term employees: Now entitled to same benefits as permanent employees on a pro-rata basis
Connection to this news: The two dozen compliances listed by the Ministry reflect these threshold-based requirements, with different compliance burdens depending on establishment size and workforce composition.
Second National Commission on Labour (2002) — The Genesis of Code-Based Reform
The idea of consolidating India's fragmented labour laws into broad codes was first recommended by the Second National Commission on Labour (NCL), chaired by Ravindra Varma, which submitted its report in 2002. The commission found that India's labour law framework, with dozens of overlapping central and state laws, was complex, contradictory, and difficult to comply with. It recommended consolidation into four or five broad groups covering industrial relations, wages, social security, safety, and welfare.
- First National Commission on Labour: Chaired by Justice Gajendragadkar (1969) — recommended minimum wages, social security expansion
- Second NCL (Ravindra Varma Commission, 2002): Recommended consolidation into 4-5 codes
- The four labour codes enacted in 2019-2020 broadly follow the Second NCL's consolidation framework
- India has concurrent jurisdiction on labour (Entry 22-24, Concurrent List, Schedule VII of the Constitution)
- Both Centre and States can legislate on labour matters; State rules are essential for implementation
Connection to this news: The pending State rules highlight the concurrent nature of labour jurisdiction — while the Centre has enacted the codes, implementation requires coordination with 28 states and 8 union territories, each responsible for framing their own rules.
Key Facts & Data
- 29 central labour laws consolidated into 4 codes
- Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), OSH Code (2020)
- Effective date: November 21, 2025; Final Central/State rules expected by April 1, 2026
- Basic pay + DA must be minimum 50% of gross wages under the new wage definition
- Retrenchment/layoff threshold raised from 100 to 300 workers
- Gig and platform workers covered under social security for the first time
- Nearly two dozen employer compliances across foundational, monthly, annual, and event-based categories
- Labour is on the Concurrent List (Schedule VII, Entries 22-24) of the Constitution