ALL YOU NEED TO KNOW 4 NEW LABOUR CODES REPLACING 29 OLDER LABOUR LAWS

 ALL YOU NEED TO KNOW 4 NEW LABOUR CODES REPLACING 29 OLDER LABOUR LAWS

Four new labour codes in India that came into effect on 21 November 2025, replacing 29 older labour laws.

Major Changes in the New Labour Codes

These four codes replace 29 older central labour laws, thereby simplifying and modernizing labour regulation

·      Code on Wages, 2019

·      Industrial Relations Code, 2020

·      Code on Social Security, 2020

·      Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

BENEFITS OF CODIFICATION

·      Single Registration

·      Single License

·      Single Statement

·      Minimum Forms

·      Common definitions

·      Reduction of Committees

·       Web-based surprise inspection

·      Use of technology

·      Electronic registration and licensing

·      Reduction of compliance cost and disputes

WHAT CODE ON WAGES COVER ?

·      There’s now a national minimum wage covering all workers—not just certain industries.

·      Definition of “wages” is more uniform (basic pay + dearness allowance + other components).

·      Overtime pay must be at least double the normal wage.

·      Payment of wages must be timely.

·      Equal remuneration to male and female workers.

EMPLOYMENT CONTRACTS AND LETTERS

·      Mandatory appointment letter for all employees, including informal workers.

·      Fixed-term workers get similar benefits as permanent workers —

·       Gratuity eligibility is reduced to 1 year (from 5 years earlier).

·      Fixed-term employees must be paid the same wages as permanent employees for similar work

INDUSTRIAL RELATIONS / HIRING-FIRING

·      The threshold for mandatory government approval for layoffs/retrenchments is raised from 100 to 300 workers.

·      Strikes: there is a 14-day notice required, and a two-member tribunal mechanism for dispute resolution.

SOCIAL SECURITY

·      Gig and platform workers are officially recognized and included under social security coverage.

·      Aggregator companies (like ride-hailing / delivery) must contribute 1–2% of their annual turnover (with some cap) toward the social security for these workers.

·      Aadhaar-linked portability of social security benefits across states.

·      Plantation workers to get benefit of ESIC.

WORKING CONDITIONS & SAFETY

·      Maximum working week is 48 hours, but daily working hours can be 8–12 (with overtime).

·      Women can now work night shifts, given their consent + required safety measures.

·      Free annual health check-up for workers above 40.

·      Simplified inspection regime: more use of web-based, algorithm-driven inspections to reduce harassment.

·      Right to women workers to work in all types of establishments.

COMPLIANCE SIMPLIFICATION

·      Single license / registration for businesses (centralised) to reduce compliance burden.

·      Electronic maintenance of registers, returns, etc., to make compliance more digital.

PENALTIES:

Many offences are decriminalized, i.e., replaced with monetary fines instead of imprisonment

DISADVANTAGES

·      Longer working hours (up to 12 hours/day) could impact worker health / work-life balance.

·      Dilution of workers’ rights (especially regarding hire-and-fire).

·      While the codes are in force, some rules (state-level) may not yet be fully notified.

 

R V SECKAR , FCS LLB, 79047 19295