Five years after Parliament approved the four major labour codes, the central government has officially notified their implementation. These codes replace 29 old labour laws and aim to modernise India’s labour system, improve worker welfare, and support the changing nature of work.
The four Labour Codes are:
- Code on Wages (2019)
- Industrial Relations Code (2020)
- Code on Social Security (2020)
- Occupational Safety, Health and Working Conditions Code (2020)
Together, they bring many key reforms. Employers must now give appointment letters to all workers, ensure statutory minimum wages, and provide free annual health checkups for employees above 40. The codes also expand social security to the entire workforce, including gig and platform workers. Women can now work at night in all establishments, and employees across the country can access State Insurance benefits.
One of the major changes is the inclusion of gig and platform workers—such as app-based delivery and ride-hailing workers—into social security schemes. Aggregators must contribute 1–2% of their annual turnover for these workers’ welfare, capped at 5% of the payments made to them.
Fixed-term employees will now enjoy the same benefits as permanent staff. They will also be eligible for gratuity after one year instead of the earlier requirement of five years.
According to officials, the codes were notified earlier but implementation was delayed. With the latest notification, only those provisions that do not need additional rule-making will take effect immediately. The Centre will soon release revised draft rules for public consultation for at least 45 days. States can also proceed with finalising their rules.
Prime Minister Narendra Modi called the move one of the biggest labour reforms since Independence. He said the codes will ensure timely wages, safer workplaces, and stronger social security—especially benefiting women and young workers.
While the Bharatiya Mazdoor Sangh welcomed the implementation, the Joint Platform of Central Trade Unions strongly opposed it, calling the move “undemocratic” and “anti-worker.” They have announced nationwide protests from November 26.
Industry leaders, meanwhile, say the reforms will boost productivity, ease compliance, and create a future-ready labour environment that offers better protection to both formal workers and gig workers.
