India has experienced one of the largest changes in the labour law in a long time. The four labour codes were officially enforced by the central government on 21 November 2025. These codes supersede 29 other old laws which were in existence over several years. To employees, employers and human resource, this reform has redefined the way wages, working hours, social security, industrial relations and working safety are managed.
It is a guide that explains everything in a simple manner. You will know what is the new labour laws, how they operate, their effects on the employee as well as the companies. In case you are interested in knowing all the recent changes, this article will allow you to be completely informed.
What Are Labour Laws in India?
Labour laws are regulations that have been developed to safeguard the working population and ensure that firms work under just standards. These legislations include the wages, working hours, safety at work, industrial relations and the social security benefits.
In the past, there were numerous laws applicable in different circumstances in India. This complicated obedience and perplexed it. All these rules are also grouped into four major codes in the updated system since everything becomes organized and easily followed.
Reasons behind the introduction of New Labour Codes in India
The government came up with labour reforms to address the old problems like:
- Complex and conflictual labour regulations.
- Definitions of wages not being consistent.
- Slow dispute resolution
- Poor social security coverage.
- Significant distinction between the formal and informal employees.
The aim of the new labour codes is to make the compliance less burdensome to the businesses and offer more protection to the workers. The concept is to broaden the social security, introduce more workers in the formal sector and streamline the legislation to all concerned.
The Four Labour Codes of India (2025)
The labour reforms in India are founded on four codes. All codes combine a number of older laws.
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Social Security Code, 2020
- Code of Occupational Safety, Health and Working Conditions (OSHWC), 2020.
All the four codes became effective officially on 21 November 2025.
Let’s break each of them down.
1. Code on Wages (Wage Code India 2025)
The Wage Code is made up of four old age wages laws and covers all workers in any sector.
Uniform Definition of Wages
Previous legislations had many definitions of wages. The new code adheres to one distinct definition. This affects:
- PF contributions
- Gratuity calculations
- Bonus
- Salary structuring
At least 50% of total salary must be counted as wages for calculation of statutory benefits.
Minimum and Floor Wages
In the new code, wage protection is reinforced.
- There will be a floor wage by the central government.
- States are not allowed to impose low minimum wages that are lower than the floor wage.
- This decreases the wage disparity in regions.
Timely Payment of Wages
Employers should be able to pay salaries in time. While delay of payment may invite penalties.
Coverage for All Workers
Previously, there were workers who were not under minimum wage cover. At this point, every worker has fallen under this code.
2. India Labour Law Working Hours (2025 Update)
One of the most significant changes is the new regulations on the working hours.
New Working Hours Structure
- Daily working hours: 8 to 12 hours
- Weekly limit: 48 hours
- The overtime should be paid twice the usual salary.
- The rules of weekly rest and compensatory rest are clearer.
Flexible shifts give the companies the option to select the shifts provided they do not exceed the weekly limit.
Women Working on Night Shifts
Women are now able to work night shifts (7 pm – 6 am) with:
- Written consent
- Transport and security arrangements
- Sufficient physical resources at the workplace.
This assists firms to work 24 hours as well as stay safe.
3. Code of Industrial Relations Code India (IR Code 2025)
This code is concerned with terms of employment, trade unions and dispute resolution.
Increased Minimum Layoff / Retrenchment.
Previously, firms that had 100 employees or above had to seek government permission to lay-off workers.
Today this number has risen to 300 employees.
This will provide employers with greater flexibility in handling their employees.
Standing Orders
Firms that employ more than 300 employees are obliged to draft standing orders (conduction, leaves, discipline, etc. rules) and distribute them to employees.
Donation Strengthening Dispute Resolution
The code facilitates the quicker resolution of disputes by:
- Industrial tribunals
- Negotiating unions
- Redressal committees of grievances.
Re-Skilling Fund
The employer should deposit 15 days of wages in a reskilling fund in case of each worker being retrenched.
This is the fund that assists the worker to acquire new skills so that he is able to get a job.
4. Social Security Code India (2025)
This code extends social security to all categories of workers even to gig and platform workers.
Gig Workers and Platform Workers Traffic
It is the inaugural occasion of gig workers such as:
- Delivery partners
- Cab drivers
- Online platform workers
have been incorporated with social security.
Aggregator firms are required to make 1-2 percent contributions to the annual turnover to a social security fund.
Gratuity After One Year
A diminished eligibility to gratuity is one of the largest changes.
Prior: 5 years of uninterrupted service.
Present: 1-year consecutive service to all employees.
This is helpful to the contract workers, gig workers, and the fixed-term workers.
Additional Advantages to Fixed-Term Wage Workers
The fixed-term workers will now enjoy benefits such as permanent workers such as:
- Maternity benefits
- Gratuity
- Working hour protections
- Social security benefits.
Provident Fund, ESI and Pension
The code is a combination of some of the older social security laws hence easier to administer.
5. OSHWC Code India (Occupational Health and Safety Workplaces Conditions)
This code addresses the safety standards, health standards and working facilities.
Free Annual Health Check-Up
Employees over 40 years of age should be provided with a free medical examination by the employer in a year.
Better Safety Standards
The code sets clear rules for:
- Hazard management
- Safety committees
- Occupational safety in risk industries.
- Accommodation of migrant workers.
Migrant Worker Protections
Migrant workers are entitled to enroll themselves in one of the national portals to receive:
- Travel allowances
- Medical facilities
- Social security benefits
Effects of New Labour Codes on Private Companies
Various policies will have to be changed by the private companies.
HR and Policy Modifications Necessary
Companies must update:
- Employment contracts
- Pay components
- Leave policies
- Disciplinary and grievance regulations.
- Guidelines on health and safety.
Single Registration and licence
Contractors are now allowed to have one five year licence with effect throughout India, and this has made compliance easy.
Digital Compliance
The majority of the filings, registrations, and returns are now done online.
Effects on Workers and Employees
These reforms would expand protection on workers.
1. Better Wage Security
Financial stability is facilitated by uniform wages, payment in time and clarity.
2. Stronger Social Security
After one year, gratuity, PF and ESI, gig worker protection and pension insurance enhance long term security.
3. Safer Workplaces
Tighter safety regulations and health inspections will guarantee improved work conditions.
4. Flexible Working Hours
Flexible working with weekly limitations benefits the workers and the employers.
Old vs New Labour Law Comparison Table
| Area | Old System | New Labour Codes (2025) |
| Number of Laws | 29 | 4 consolidated codes |
| Gratuity Eligibility | 5 years | 1 year |
| Definition of Wages | Different per law | One uniform definition |
| Working Hours | Varied | 8–12 hours/day, 48 hours/week |
| Layoff Threshold | 100 workers | 300 workers |
| Gig Workers | Not covered | Fully covered |
| Women Night Shifts | Limited | With proper precautions permitted |
| Social Security | Sector-wise | Universal coverage |
| Compliance | Multiple returns | Single annual return |
The Future of Work in India and the molding effects of these changes
The new labour structure is geared towards modernising the Indian labour force and business climate. It is anticipated that some of the results will be:
- Further formalization of the labor force.
- Improved benefits on informal and gig workers.
- Reduced compliance, which results in increased investments.
- Less inflexible job structures.
- Higher safety standards
- Better dispute resolution.
Although there have been complaints by certain labour groups that flexibility has been biased towards employers, the reforms attempt to balance between the labour rights in india of workers and the needs of organisations.
FAQs on Labour Law in India 2025
1. Which are the four new labour codes in India?
These are the Wage Code, industrial relations code, social security code and OSHAWC code.
2. What was the time when the labour codes were introduced?
All the four codes took effect on 21 November 2025.
3. What is the rule of new working hours?
The daily work hours can be 8- 12 hours and a maximum of 48 hours weekly. The overtime is a payment which is twice the regular pay.
4. Do labour laws now protect gig workers?
Yes. The Social Security Code is the first time that gig and platform workers are covered under the Code.
5. Is the gratuity applicable after 1 year?
Yes. The employees will be eligible to receive gratuity after one year of continuous service.
6. Can women work night shifts?
Yes. Women are allowed to work during night shifts but with their permission and safety measures put in place.
7. What will be the impact of new law on the private companies?
Organizations have to revise contracts, policies, payroll system, safety measures and compliance systems.
8. What is the wage floor?
Minimum national wage is a national wage that is established by the central government. States are not allowed to set wages below the floor.
9. Are there any labour codes which are applicable to every industry?
Yes, they are appropriate in every industry, whether it is a private company, a manufacturing unit, gig workers and platforms-based businesses.
10. Is the new system completely digital?
The compliance services such as most complies, filings, and registration shall be done in a unified digital manner.
Final Summary
There is a significant change on the labour law update of India in November 2025. The new labour codes ease the law and enhance clarity on wages, update on working hours, enhance social security and enhance safety standards. To the employees, the reforms are more protective. To businesses, they cause a more flexible and easier compliance.
Having an insight on these changes, both parties remain compliant and ready to the future of work in India.
