Aatmanirbhar push: India rolls out unified labour codes for a future ready workforce. Check details

In a landmark labor reform, the government of India on Friday notified the implementation of the four much-awaited labor laws — the Wages Act (2019), the Industrial Relations Act (2020), the Social Security Act (2020) and the Occupational Safety, Health and Working Conditions (OSHWC) Act (2020). Effective November 21, 2025, the move consolidates and rationalizes 29 central labor laws, many of which date back to the pre-independence and early post-independence period.

Terming the move “historic”, the Ministry of Labor and Employment said the new framework is designed to ensure better wages, enhanced safety, stronger social security and greater well-being for India’s workforce. It also aligns the country’s business ecosystem with global standards while supporting a more resilient, modern economy ready to deal with challenges.

Modernizing the Colonial Era Framework

India’s current labor regulations are built on laws created between the 1930s and 1950s, an era when work structures, technology, and economic realities were vastly different. Over time, these fragmented and complex laws have created uncertainty for workers and increased compliance burdens on the industry.

The four labor laws aim to correct this by creating a unified, transparent and future-ready system. Its implementation is expected to empower workers – including women, youth, independent workers and migrants – while enabling industries to grow while reducing regulatory friction.

Before vs. after: major transitions

1. Formalization: Letters of appointment, which were not previously mandatory, will now be mandatory for all workers – enhancing transparency, job security and official employment records.
2. Social Security: Coverage extends to all workers, including gig workers and platform workers. Benefits like PF, ESIC, insurance and pension will become available to everyone.
3. Minimum wage: The minimum wage, which was earlier limited to scheduled industries, will now be applied to all workers across the country under the legal right to fair pay.
4. Health and Safety: Employers must provide free annual health examinations for workers over 40 years of age. Workplace safety standards will be coordinated through a national council for occupational safety and health.
5. Wages on time: Employers are now legally required to ensure timely disbursement of wages.
6. Women’s participation: Women are allowed to work night shifts and in all occupations – including mining, heavy machinery and hazardous roles – with mandatory safety measures and explicit consent.
7. Ease of compliance: Multiple registrations and filings will be replaced by a single license, registration and return, significantly reducing the compliance burden on employers.

Sector-level improvements

The rules offer comprehensive protection across industries:

• Employees on fixed-term contracts: They are entitled to benefits equal to permanent employees; The bonus is due after one year.
• Party and platform workers: It was legally defined for the first time; Aggregators contribute 1-2% of Social Security’s total sales.
• Contract workers: Guaranteed social security, health benefits and annual health examinations.
• Female workers: Prohibition of gender discrimination; Equal pay is mandatory. Mandatory representation in grievances committees.
• Young workers: Mandatory letters of appointment, minimum wage protection, and paid leave.
• Micro, small and medium enterprises: All workers covered by social security; Ensure uniform working hours, overtime standards and basic facilities.
• pedi, farms, textile, IT/IT services, mining, docking, export and hazardous industries: Uniform wages, working hours, protective equipment, medical facilities, grievance redressal systems, and expanded safety provisions.
• Audio-visual and digital media: Mandatory appointment letters, Social Security benefits, and wage authorizations in a timely manner.

Expanding Social Security and the national minimum wage

The national minimum wage will ensure that no worker receives a wage below a basic standard of living. The OSHWC and Social Security Act include farms, hazardous industries, transportation, digital media, and more in comprehensive coverage.

Gender neutrality is embedded in the provisions – discrimination against women and transgender people is explicitly prohibited.

Resolve conflicts more smoothly

The new inspector-facilitator model focuses on guidance and compliance rather than punitive measures. Faster dispute resolution will be enabled through two-member industrial tribunals, which workers can resort to immediately after conciliation.

A big leap in the social protection journey

Social security coverage in India expanded from 19% of the workforce in 2015 to more than 64% in 2025, according to the ministry. Labor laws are expected to expand this coverage further, including portability of benefits for migrants, freelancers, platforms, and unorganized workers.

The government said wide-ranging consultations with stakeholders will continue as the rules and plans are finalized. Current laws will remain in effect during the transitional period. The rules represent a decisive shift towards a pro-worker, pro-women and pro-industry ecosystem – one that supports job creation, skills and a future-ready workforce.