Here’s everything you need to know about the new Labour Codes in India 2025 – history, enactment timeline, major reforms and what it means for employers and employees.
What Are the Four New Labour Codes?
1. Code on Wages, 2019 – Implemented earlier
2. Industrial Relations Code, 2020
3. Code on Social Security, 2020
4. Occupational Safety, Health and Working Conditions Code, 2020
All four codes came into force nationwide on 21 November 2025 after years of rule-making and state-level coordination.
Why Were the New Labour Codes Introduced?
India’s old labour laws (many from the British era and 1950s–80s) were fragmented across central and state laws, leading to:
- Overlapping compliances
- Inconsistent rules across states
- Heavy paperwork and inspector raj
- Difficulty in adapting to gig economy and modern work models
The consolidation process started in the early 2000s but accelerated after 2014 under the “ease of doing business” and formalisation push.
Timeline of India’s Labour Codes (2019–2025)
| Year | Milestone |
| 2019 | Code on Wages passed & implemented (merged 4 wage laws) |
| 2020 | Remaining 3 codes passed in Parliament during COVID session |
| 2021–2024 | Drafting of central & state rules, pre-publication, stakeholder comments |
| 2025 | Final rules notified → All 4 Labour Codes enforced from 21 Nov 2025 |
Top 10 Game-Changing Reforms in the New Labour Codes 2025
1. National Floor Wage
No state can fix minimum wages below the centrally decided floor level → huge boost for wage uniformity.
2. Mandatory Written Appointment Letters
Every employee (including fixed-term) must get a formal offer/appointment letter.
3. Gig & Platform Workers Now Covered
Social Security Code recognises and extends benefits to gig workers, delivery partners, cab drivers, etc. for the first time.
4. Women Allowed in Night Shifts
With consent and proper safety/transport arrangements.
5. Fixed-Term Employment Clarified
Clear rules and same benefits as permanent employees for fixed-term workers.
6. Single Registration & Single Licence
One registration and one licence instead of multiple under old laws.
7. Inspector-cum-Facilitator Model
Shift from punishment to guidance; web-based randomised inspections.
8. Faster Dispute Resolution
Compulsory mediation before tribunal; stricter timelines for industrial disputes.
9. Easier Hire & Fire (with conditions)
Prior government permission needed only for units with 300+ workers (earlier 100).
10. Universal Social Security Ambition
Aadhaar-based registration, possible future expansion to all workers.
Expert Opinion: What the New Labour Codes Mean for Businesses
Mayank Parashar, Legal Associate at Clasis Law, says:
“The biggest win is formal recognition of gig, platform and fixed-term employment. Companies now have legal clarity to build flexible yet compliant workforce models. National Floor Wage removes state-wise uncertainty in compensation planning. Single registration/licensing and the facilitator model drastically cut red tape. These codes strike a rare balance — stronger worker rights + predictable environment for scalable growth.”
What’s Next After 21 November 2025?
- Companies must update HR policies, contracts and payroll systems immediately.
- Issue appointment letters to existing employees where missing.
- Register on the new Shram Suvidha / labour portals under the new codes.
- Train teams on compliance under the inspector-cum-facilitator regime.
The full rollout of India’s four Labour Codes on 21 November 2025 ends decades of regulatory fragmentation. By simplifying compliance, recognising modern work arrangements and ensuring minimum national standards, these reforms aim to create a transparent, worker-friendly and investment-attractive labour ecosystem.
Whether you’re an employer, HR professional or employee, understanding the new Labour Codes 2025 is now essential.
