ExplainerLabour codes
The four labour codes: what changes for workers and employers
Four codes replaced 29 central labour laws in November 2025. Here is what they promise workers, what they ask of employers, and why so much still depends on the states.
The short answer
The Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code came into force on 21 November 2025, replacing 29 central laws. They promise workers appointment letters, a statutory minimum wage, gratuity for fixed-term staff after one year and social security for gig workers, and cut the paperwork for employers. How they apply depends partly on state rules, which most states had not finalised as of October 2026.
What are the four labour codes?
They are four laws that replaced 29 central labour laws and came into force on 21 November 2025. The Code on Wages, 2019 deals with pay. The Industrial Relations Code, 2020 covers unions, strikes, layoffs and disputes. The Code on Social Security, 2020 covers provident fund, insurance, gratuity and benefits for gig workers. The Occupational Safety, Health and Working Conditions Code, 2020 covers working hours, safety and welfare.
Parliament passed the codes in 2019 and 2020, but they took effect only after the government notified them. The Centre notified its rules under all four codes, along with Model Standing Orders, on 8 May 2026. Parliament also amended the Industrial Relations Code in February 2026, according to PRS Legislative Research.
What changes for workers?
Every worker is to get an appointment letter, a statutory minimum wage and timely pay. These are among the changes the government listed when the codes took effect, as summarised by KPMG.
Other changes for workers include:
- Fixed-term employees become eligible for gratuity after one year of service, and are to get the same wages and benefits as permanent staff.
- Employers must offer a free annual health check-up to workers above 40.
- ESIC health insurance coverage is extended across India, and is mandatory for establishments with even one worker in a hazardous process.
- Women may work night shifts and in all types of work, subject to their consent and safety measures.
- In IT and IT-enabled services, salaries must be paid by the seventh of each month.
What do gig and platform workers get?
Gig and platform workers are brought under the Code on Social Security, with contributions from the companies they work through. Aggregators are to contribute 1% to 2% of their annual turnover, capped at 5% of what they pay these workers, according to KPMG.
The central rules require every gig and platform worker aged 16 or more to register on a central portal with Aadhaar. To be eligible for benefits, a worker needs 90 days of engagement with one aggregator, or 120 days across several, in the previous financial year, according to Shardul Amarchand Mangaldas. Benefits stop at age 60.
What changes for employers?
Far fewer forms, registers and returns, but new duties on appointment letters, health checks and contributions. A Grant Thornton Bharat report, cited by Business Standard, counts the reduction.
When an employer retrenches a worker, the central Industrial Relations rules require it to transfer 15 days’ last drawn wages per retrenched worker to a re-skilling fund within ten days, according to Shardul Amarchand Mangaldas.
Why do state rules matter so much?
Labour is on the concurrent list, and state governments are the appropriate government in most cases, so many provisions work through state rules. On 24 September 2026, Labour Secretary Chandra Bhushan Kumar said ten states had published final rules and the rest had issued drafts. The Centre hopes all states and Union Territories will have rules by 31 October 2026.
As of July, The Tribune reported that Kerala had asked for more time and that West Bengal had not published draft rules.
Do the rules differ between states?
Yes, and in ways that affect what workers get. Several states’ social security rules make fixed-term staff eligible for gratuity after one year, but Gujarat’s require five years, according to Shardul Amarchand Mangaldas.
Rules on women’s night shifts also vary. Some states’ rules allow women to work before 6 am and after 7 pm with written consent, transport, lighting, CCTV and compliance with the law on sexual harassment at work. Bihar requires at least two women on duty and Uttar Pradesh at least four.
What is still unsettled?
Several definitions and some timelines. The Grant Thornton Bharat report flagged the lack of definitions for managerial, administrative and supervisory roles, and questions about the rule requiring final wages to be paid within two working days after a worker leaves.
The ministry is also building a “Labour Stack”, a single platform linking worker databases and welfare schemes, aimed at unorganised, gig and platform workers. On 24 September, Kumar said a pilot was expected within about 15 days.
Labour codes: key dates
- 2019–2020Parliament passes the four codes
- 21 Nov 2025Codes come into force, replacing 29 central laws
- Feb 2026Parliament passes the Industrial Relations Code (Amendment) Bill, 2026
- 8 May 2026Central rules notified under all four codes
- 24 Sep 2026Ten states have final rules, says Labour Secretary
- 31 Oct 2026Centre's target for all state rules
The documents
- The Industrial Relations Code (Amendment) Bill, 2026PRS Legislative Research