Labour reforms: Govt fully operationalises four new codes by publishing rules

The Union Government fully operationalised four new labour codes by notifying all accompanying rules, completing a reform process that had been underway for ...

What Happened

The Union Government fully operationalised four new labour codes by notifying all accompanying rules, completing a reform process that had been underway for over five years.
The four codes — the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSH) Code (2020) — came into force on November 21, 2025, with draft rules finalised and notified after legal vetting.
The new framework consolidates 29 existing central labour laws into a single, simplified architecture, extending protections to gig workers, platform workers, and informal sector employees for the first time in India's statutory labour law history.
Key new protections include mandatory appointment letters for all workers, a National Reskilling Fund for displaced workers, equal wages for men and women, extended maternity leave to 26 weeks, and universal social security coverage.

Static Topic Bridges

Code on Wages, 2019

The Code on Wages (2019) was the first of the four codes to be enacted. It standardises wage definitions and structures across all industries and establishments, replacing four older laws. The code mandates a single, unified definition of "wages" applicable to all four codes, which must constitute at least 50% of total remuneration — closing the practice of artificially inflating allowances to suppress provident fund and gratuity contributions.

Replaces: Minimum Wages Act (1948), Payment of Wages Act (1936), Payment of Bonus Act (1965), Equal Remuneration Act (1976).
Universal floor wage: Applies to all employees regardless of sector or establishment size.
Equal remuneration for men and women performing the same work is now a statutory mandate.

Connection to this news: The Code on Wages is the foundational pillar of the new labour architecture; its full operationalisation means every employer in India must now conform to the unified wage definition and mandatory appointment letter norms.

The Code on Social Security (2020) unifies nine laws and, for the first time, extends social security coverage to gig workers, platform workers, and the unorganised sector. It mandates aggregators to contribute 1–2% of annual turnover (capped at 5% of payouts to gig/platform workers) to a central Social Security Fund. Workers aged 40 and above are entitled to annual health check-ups.

Unifies: Employees' Provident Funds Act (1952), Employees' State Insurance Act (1948), Maternity Benefit Act (1961), Payment of Gratuity Act (1972), and five others.
Maternity leave extended to 26 weeks (from 12 weeks under the old regime for eligible categories).
Gig and platform workers receive life insurance, health coverage, and disability benefits.

Connection to this news: This code's operationalisation creates the legal basis for the gig worker social security portal and the aggregator contribution obligations that are being enforced from 2026.

Industrial Relations Code, 2020

The Industrial Relations Code (2020) merges three older industrial relations laws and introduces significant flexibilities for workers and employers, including a four-day workweek option (with a maximum of 12 hours per day, maintaining a 48-hour weekly limit) and mandatory 48-hour wage settlement upon separation.

Replaces: Industrial Disputes Act (1947), Industrial Employment (Standing Orders) Act (1946), Trade Unions Act (1926).
Threshold for mandatory prior permission for layoffs and closures raised to establishments with 300+ workers (from 100).
Fixed-term employment contracts now carry the same pro-rated benefits as permanent employment.

Connection to this news: The code's full notification means the redefined standing orders, fixed-term employment norms, and re-skilling fund contributions are now enforceable.

Occupational Safety, Health and Working Conditions (OSH) Code, 2020

The OSH Code consolidates 13 separate laws into one framework, extending occupational safety protections to inter-state migrant workers, building and construction workers, and contract labour — categories historically underserved by India's safety law regime.

Replaces 13 laws including the Factories Act (1948), Contract Labour (Regulation and Abolition) Act (1970), and Inter-State Migrant Workmen Act (1979).
Mandates appointment letters and portable social security accounts for migrant workers.
Extends annual health check-up entitlement to workers aged 40 and above.

Connection to this news: The OSH Code operationalisation is particularly significant for construction, mining, and factory-sector employers who must now integrate migrant worker protections and portable benefits.

Key Facts & Data

29 central labour laws consolidated into four codes.
Effective date: November 21, 2025.
Wage floor: Basic wages must constitute a minimum of 50% of total remuneration.
Maternity leave: Extended to 26 weeks for eligible women workers.
Gig worker social security fund: Aggregator contribution set at 1–2% of annual turnover (capped at 5% of payments to gig/platform workers).
Four-day workweek: Permissible if daily hours remain within the 12-hour cap and weekly hours within 48.
48-hour wage settlement: Mandatory upon worker separation/termination.
National Reskilling Fund: To be created for workers displaced by technological change.
Ethanol production capacity from molasses-based distilleries proposed to expand to 760 crore litres; grain-based to 740 crore litres.