Latest News
Four Labour Codes Effective from 21 November 2025: What Business Owners Need to Know
On 21 November 2025, the Ministry of Labour & Employment of India declared that four major labour codes are now in force.
For business owners, this marks a significant shift in how labour-compliance, worker benefits and operational responsibilities will play out. Here’s a clear, concise guide to what you must know.
The new labour codes consolidate, simplify and modernise those laws, aligning with global standards and aiming for a future-ready, resilient workforce and industry.
The Four Codes at a Glance:-
1. Code on Wages, 2019 – Introduces a statutory right to a minimum wage and timely wage payment for all workers.
2. Industrial Relations Code, 2020 – Updates how employer-employee relations, trade-unions, collective bargaining and dispute-resolution will work.
3. Code on Social Security, 2020 – Expands social security coverage to gig and platform workers, fixed-term employees, migrant workers and more, with nationally portable entitlements.
4. Occupational Safety, Health & Working Conditions Code, 2020 – Strengthens workplace safety, health standards, working-conditions and employer responsibilities across sectors.
Key Implications for Business Owners:-
• Formalisation of employment: All workers must now receive appointment letters.
• Minimum wage & timely payment: Minimum wage becomes a statutory right and wages must be paid timely.
• Social security expansion: Even gig/ platform workers, migrant workers and fixed-term employees will be entitled to social protection.
• Women & youth workforce: Women are permitted in night shifts/ work types, with equal pay for equal work. Youth get improved protections.
• Reduced compliance burden: One registration, one licence, one return replaces multiple filings in many cases.
• Fixed-term employees: They will receive benefits equal to permanent employees. Gratuity eligibility improves (after one year).
What Business Owners should do now:-
• Review your workforce structure: contract, fixed-term, gig-workers — assess how the new codes affect their status.
• Update employment documentation (appointment letters, contracts, social security enrolments).
• Ensure payroll systems recognise minimum wage obligations and timely payment requirements.
• Review social-security compliance for all workers across categories including gig/ platform and migrant.
• Audit your workplace safety & health systems to align with the new standards under the OSHWC Code.
• Simplify your filings and registrations: prepare for possible single-registration / single-return processes.
• Engage with your legal/ compliance partner to map transition timelines and rule-making (the rules under the codes will be notified subsequently).
For business owners, this is a landmark moment: compliance becomes clearer, worker rights stronger, and the regulatory framework more streamlined. With the four labour codes now effective, you have both an opportunity and an obligation: to build a workforce that is secure, productive and aligned to modern standards- while ensuring your business adapts smoothly and remains future-ready.