India Implements Four New Labour Codes: What You Need to Know
The Indian government has announced the implementation of four landmark Labour Codes, set to overhaul the country’s employment landscape. These codes consolidate 29 existing labour laws into four comprehensive statutes, aiming to modernize regulations, expand worker protections, and simplify compliance for businesses.
Key Takeaways
- Four Labour Codes implemented: Wages, Industrial Relations, Social Security, and Occupational Safety
- 29 existing labour laws consolidated into four modern statutes
- Mandatory appointment letters and social security for all workers including gig workers
- National floor wage to ensure minimum living standards
- Mixed reactions from employers and trade unions
Implementation Timeline and State Coordination
Union Labour Minister Mansukh Mandaviya announced the implementation on November 21. The codes were passed by Parliament between 2019-2020, but implementation has been delayed due to the need for state-level rule-making. As of July 2025, 32 States and Union Territories have pre-published draft Rules, while West Bengal, Lakshadweep, Delhi, and Tamil Nadu are yet to complete the process for all codes.
Major Changes and Worker Benefits
The new codes introduce several transformative provisions:
- Code on Wages: Replaces four acts including Minimum Wages Act and Payment of Bonus Act
- Industrial Relations Code: Consolidates three acts including Industrial Disputes Act
- Social Security Code: Nullifies nine acts including Maternity Benefit Act
- OSHWC Code: Repeals acts like Factories Act and Mines Act
Key benefits include mandatory appointment letters for all workers, social security coverage for gig and platform workers, gender-neutral pay, and permission for women to work night shifts across all sectors. The government emphasizes a shift from punitive enforcement to compliance support.
Employer Perspectives
R. Mukundan, president-designate of CII, welcomed the codes, stating they “will create jobs, ensure social protection and maintain industrial harmony.” He highlighted benefits like digital filings and uniform standards across states.
However, MSME representatives expressed concerns. The Association of Indian Entrepreneurs warned of “significant operating cost increases” and sought transitional support with reduced penalties.
Trade Union Concerns
Most Central Trade Unions oppose the codes, organizing multiple strikes since 2019. Key concerns include:
- Reduction of state powers to set minimum wages
- Inadequate social security coverage for 93% of workers
- Restrictions on trade union functioning and right to strike
- Increased thresholds excluding workers from protections
Bharatiya Mazdoor Sangh supports two codes but questions provisions in Industrial Relations and OSHWC Codes.
Next Steps
The government will provide 45 days for stakeholder feedback on modified draft Rules. Opposition-ruled states like Kerala have declared they won’t implement the codes, while others question the Centre’s “unilateral approach.” Trade unions demand reconvening the Indian Labour Conference, while employers seek more factory-level discussions.
