India's New Labour Codes — A Comprehensive Summary

About This Article

This article is a summary and reference guide to India's four new Labour Codes that came into force on 21 November 2025. Its purpose is to provide practitioners, businesses, and workers with a clear understanding of what each Code says, what it covers, and what it means in practice — both for employers and employees.

This article does not focus on a comparison between the new Codes and the old laws they replaced, nor does it analyse what has 'changed.' The intent is to present the key provisions, important obligations, and entitlements under each Code as they stand today, along with a complete list of the 29 central legislation that stand repealed. Readers seeking a change-analysis should consult a qualified legal professional.

Note: Central and State rules under the Codes are still being finalised in a phased manner. To the extent rules are pending, provisions of prior regulations continue to apply where not inconsistent with the Codes.

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Overview: India's Labour Law Consolidation

The Government of India has consolidated 29 central labour laws — many dating back to the colonial era — into four comprehensive Labour Codes enacted between 2019 and 2020, which came into force on 21 November 2025. The four Codes are:

• Code on Wages, 2019

• Industrial Relations Code, 2020

• Code on Social Security, 2020

• Occupational Safety, Health & Working Conditions Code, 2020

Together, these Codes cover over 500 million workers across India — organised, unorganised, gig, platform, contract, migrant, and fixed-term — and provide a unified framework for wages, industrial relations, social security, and workplace safety.

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Code 1: Code on Wages, 2019

Laws Repealed

• Payment of Wages Act, 1936

• Minimum Wages Act, 1948

• Payment of Bonus Act, 1965

• Equal Remuneration Act, 1976

Overview

The Code on Wages, 2019 is the first of the four Labour Codes and provides a single unified framework for wage regulation across all establishments and sectors. Unlike prior laws, there is no minimum employee threshold — every employer, however small, is covered. The Code introduces a National Floor Wage concept, below which no State government may set minimum wages, and mandates gender pay parity.

Key definition — Wages: Wages means the sum of basic pay, dearness allowance, and retaining allowance. All other allowances (HRA, conveyance, overtime, etc.) combined must not exceed 50% of total remuneration. If they exceed 50%, the excess is deemed part of wages — directly impacting EPF and gratuity computations.

From the Employer's Perspective

• Must ensure wages meet or exceed the National Floor Wage set by the Central Government (currently ₹178/day as notified in 2019; revision expected).

• Must pay wages within two working days of separation (resignation, retrenchment, or termination).

• The 50% cap rule on allowances restructures payroll: allowances exceeding 50% of total pay are reclassified as 'wages,' increasing EPF and gratuity cost.

• Mandatory statutory bonus to eligible employees; ceiling for eligibility to be notified by each State.

• Central Advisory Board to include at least one-third women representation; gender discrimination in wages is penalised.

• Deductions from wages capped at 50% of total wages in any wage period.

• Simplified, unified registers and returns replace multiple compliances under the four repealed laws.

From the Employee's Perspective

• Universal minimum wage protection — all workers, including those in unscheduled employments previously excluded, now have minimum wage entitlements.

• Equal pay for equal work regardless of gender is now a statutory right with penal consequences for violation.

• Higher EPF and gratuity contributions over time due to the 50% wages rule, improving long-term financial security.

• Full and final payment must be made within two working days of leaving employment — no prolonged delays.

• Bonus entitlement extended with a uniform framework across sectors.

• Workers can approach an authority for claims of unpaid or underpaid wages within three years.

• Workers in contract and platform employment covered equally — no longer excluded from wage protections.

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Code 2: Industrial Relations Code, 2020

Laws Repealed

• Trade Unions Act, 1926

• Industrial Employment (Standing Orders) Act, 1946

• Industrial Disputes Act, 1947

Overview

The Industrial Relations Code, 2020 restructures the law governing trade unions, conditions of employment (standing orders), and dispute resolution. One of its most significant provisions is the increase of the threshold for requiring government approval for layoffs, retrenchment, and closure from 100 workers to 300 workers. The Code also introduces fixed-term employment as a recognised category, provides for a re-skilling fund, and formalises the Negotiating Union/Council framework for collective bargaining.

Fixed-term employment: Fixed-term employees are entitled to the same wages, hours, social security, and statutory benefits as permanent employees. They become eligible for gratuity after completing one year of service — a significant feature when read together with the Social Security Code.

From the Employer's Perspective

• Establishments with fewer than 300 workers may carry out layoffs, retrenchment, and closure without government permission.

• Establishments with 300 or more workers must seek prior government permission for retrenchment or closure.

• Must contribute 15 days' last-drawn wages of every retrenched worker to the National Re-skilling Fund.

• Standing orders (service rules) are now mandatory only for establishments with 300 or more workers.

• Recognised Negotiating Union or Negotiating Council to be the sole collective bargaining representative — reduces multiple union complications.

• Work-from-home is formally recognised under the Model Standing Orders for service sectors, with terms set by the employer.

• Strikes and lock-outs: mandatory notice of 14 days required; no strike during conciliation proceedings or for 60 days after conclusion of proceedings.

From the Employee's Perspective

• Trade unions formally recognised at Central and State levels with a defined process for recognition as Negotiating Union or Council.

• Retrenched workers benefit from contributions to the re-skilling fund to support transition and skill upgradation.

• Fixed-term employees enjoy parity with permanent employees in wages, benefits, and social security during the contract period.

• Industrial Tribunal (two-member) replaces single-member tribunals for faster dispute resolution.

• Workers' representatives must constitute one-third of the Grievance Redressal Committee — with emphasis on women's representation.

• Retrenchment compensation payable at 15 days' average pay per completed year of service.

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Code 3: Code on Social Security, 2020

Laws Repealed

• Employees' Provident Funds & Miscellaneous Provisions Act, 1952

• Employees' State Insurance Act, 1948

• Employees' Compensation Act, 1923

• Payment of Gratuity Act, 1972

• Employees' Deposit-Linked Insurance Act, 1976

• Maternity Benefit Act, 1961

• Building & Other Construction Workers' Welfare Cess Act, 1996

• Unorganised Workers' Social Security Act, 2008

• Cine Workers Welfare Fund Act, 1981

Overview

The Code on Social Security, 2020 is the most expansive of the four Codes, bringing together nine separate laws governing EPF, ESIC, gratuity, maternity benefits, employees' compensation, and social security for unorganised workers. Its landmark provision is the extension of social security coverage to gig workers, platform workers, and workers in the unorganised sector — a first in India's legislative history. Registration is now linked to the Aadhaar number, enabling a simplified, portable identity for workers.

Gratuity for fixed-term employees: A fixed-term employee who completes one year of continuous service becomes eligible for gratuity on expiry of the fixed-term contract. For regular employees, the five-year minimum service requirement continues to apply.

From the Employer's Perspective

• EPF, ESIC, gratuity, maternity benefit, and employees' compensation now managed under a single unified registration and compliance framework.

• Aggregators (app-based platforms) are required to contribute to a Social Security Fund for their gig and platform workers; exact contribution rates to be notified.

• Gratuity must be paid to fixed-term employees after one year of service — increases cost compared to prior practice.

• Limitation period for proceedings under the Code is five years — employers must maintain complete records for at least this period.

• Inspector-cum-Facilitator framework replaces the earlier adversarial inspection model; inspections are conducted using a computerised system based on risk criteria.

• Employers in the building and construction sector must register and contribute to the welfare fund for such workers.

From the Employee's Perspective

• Gig workers and platform workers are formally defined and recognised; social security contributions from aggregators are mandatory for their benefit.

• Unorganised workers — domestic workers, agriculture workers, street vendors, and others — are entitled to social security benefits including life insurance, disability insurance, health & maternity benefits, and old-age protection.

• Maternity benefit of 26 weeks of paid leave continues; provisions extended to adoptive and commissioning mothers.

• Aadhaar-linked registration enables portability of social security benefits — employees do not lose benefits on changing jobs.

• Fixed-term employees eligible for gratuity after just one year (vs. five years for permanent workers).

• ESIC coverage extended to more categories of workers and establishments based on revised wage thresholds.

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Code 4: Occupational Safety, Health & Working Conditions Code, 2020

Laws Repealed (select)

• Factories Act, 1948

• Contract Labour (Regulation & Abolition) Act, 1970

• Mines Act, 1952

• Inter-State Migrant Workmen (RE & CS) Act, 1979

• Plantations Labour Act, 1951

• Building & Other Construction Workers (RECS) Act, 1996

• Motor Transport Workers Act, 1961

• Beedi & Cigar Workers (Conditions of Employment) Act, 1966

• Working Journalists & Other Newspaper Employees Act, 1955

• Dock Workers (Safety, Health & Welfare) Act, 1986

• And 3 more central laws

Overview

The OSH Code is the most operationally impactful code on factory floors and construction sites. It consolidates 13 statutes governing safety, health, and working conditions across factories, mines, plantations, construction, ports, and contract labour. The Code standardises working hours at 48 hours per week, introduces a universal annual leave entitlement, provides a Journey Allowance for migrant workers, and requires every worker to be issued an appointment letter. All establishments employing 10 or more workers are covered.

Women at work: Women are now permitted to work in night shifts (7 p.m. to 6 a.m.) with their consent, subject to safety conditions notified by the appropriate government. The Code also allows women to be employed in hazardous occupations where previously restricted, subject to safety safeguards.

From the Employer's Perspective

• Single registration required for all establishments under the OSH Code, replacing multiple registrations under various repealed laws.

• Must issue a written appointment letter to every worker — a first-of-its-kind universal obligation.

• Working hours capped at 48 per week; overtime must be double the ordinary rate of wages; consent required for overtime beyond limits.

• Principal employers bear liability for contract workers' health, safety, and wage disputes where the contractor defaults.

• Journey Allowance: cost of travel for migrant workers from their home state to the place of work must be borne by the employer.

• Safety committee mandatory in factories with 500 or more workers, with equal representation of workers and management.

• Annual medical examination mandatory for workers employed in hazardous processes; records to be maintained for 10 years.

From the Employee's Perspective

• Every worker is entitled to an appointment letter — reduces exploitation of informal workers with no written terms of employment.

• Uniform working hours of 48 per week and mandatory overtime pay at double rate applies across industries.

• Annual leave of one day for every 20 days of work (for adults); one day for 15 days of work for workers below 18 years.

• Migrant workers entitled to Journey Allowance (round trip), portable social security coverage, and a toll-free helpline.

• Contract workers entitled to the same wages and benefits as regular workers in the same establishment for the same or similar work.

• Women workers permitted in night shifts with appropriate safety protections — expanding employment opportunities.

• Canteens, crèches, restrooms, and first-aid facilities mandated across categories of establishments based on worker count thresholds.

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Complete List of 29 Repealed Central Laws

All 29 central labour statutes stand repealed as of 2 February 2026. The table below lists each statute and the Code under which it is subsumed.

Code on Wages, 2019 — 4 laws

• Payment of Wages Act, 1936

• Minimum Wages Act, 1948

• Payment of Bonus Act, 1965

• Equal Remuneration Act, 1976

Industrial Relations Code, 2020 — 3 laws

• Trade Unions Act, 1926

• Industrial Employment (Standing Orders) Act, 1946

• Industrial Disputes Act, 1947

Code on Social Security, 2020 — 9 laws

• Employees' Provident Funds & Miscellaneous Provisions Act, 1952

• Employees' State Insurance Act, 1948

• Employees' Compensation Act, 1923

• Payment of Gratuity Act, 1972

• Employees' Deposit-Linked Insurance Act, 1976

• Maternity Benefit Act, 1961

• Building & Other Construction Workers' Welfare Cess Act, 1996

• Unorganised Workers' Social Security Act, 2008

• Cine Workers Welfare Fund Act, 1981

OSH & Working Conditions Code, 2020 — 13 laws

• Factories Act, 1948

• Contract Labour (Regulation & Abolition) Act, 1970

• Mines Act, 1952

• Inter-State Migrant Workmen (RE & CS) Act, 1979

• Plantations Labour Act, 1951

• Building & Other Construction Workers (RECS) Act, 1996

• Working Journalists & Other Newspaper Employees Act, 1955

• Working Journalists (Fixation of Rates of Wages) Act, 1958

• Motor Transport Workers Act, 1961

• Sales Promotion Employees (Conditions of Service) Act, 1976

• Beedi & Cigar Workers (Conditions of Employment) Act, 1966

• Dock Workers (Safety, Health & Welfare) Act, 1986

• Mines and Minerals (Development & Regulation) Amendment Act (safety provisions)

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Transitional Note

All registrations, filings, contribution payments, and actions validly taken under the repealed legislation continue to be valid and effective. Existing trade unions, standing orders, and labour court proceedings carry forward under the corresponding provisions of the new Codes until formally reconstituted or concluded.

Central and State rules under the Codes are being finalised in a phased manner. Until final rules are notified, provisions from prior regulations continue to apply where not inconsistent with the Codes.

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This article is published for general informational and educational purposes only. It does not constitute legal advice. Readers are advised to consult a qualified legal professional for guidance specific to their situation. © 2026 LexWin · www.LexWin.co.in