CENTRE OPERATIONALISES LABOUR CODES, PUBLISHES RULES-- WITH THE LATEST GAZETTE NOTIFICATION OF RULES, THE ENTIRE LABOUR CODE FRAMEWORK IS NOW FULLY FUNCTIONAL NATIONWIDE

 CENTRE OPERATIONALISES LABOUR CODES, PUBLISHES RULES-- WITH THE LATEST GAZETTE NOTIFICATION OF RULES, THE ENTIRE LABOUR CODE FRAMEWORK IS NOW FULLY FUNCTIONAL NATIONWIDE

FULLY OPERATIONALISED

The Centre has fully operationalized India’s new labour law framework by notifying the final rules for all four labour codes in the official gazette, completing a major labour reform process initiated over five years ago.

The four codes broaden worker protection, easing business operations and promoting a pro-worker labour ecosystem.

THE FOUR CODES:

The Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020), officially came into force on November 21, 2025.

GAZETTE NOTIFICATIONS

In over 30 gazette notifications issued on Friday (May 8, 2026) and Saturday (May 9, 2026), the Union government fully operationalized the four Labour Codes. Officials maintained that the rules had been published with “minor amendments” to the draft rules pre-published in December 2025.

MAJOR PROVISIONS:

·      Eight-hour workday and 48-hour weekly cap.

·      Mandatory weekly rest days; overtime pay for work on rest days.

·      Digital compliance: electronic registers, wage slips, claims, and notices.

·      Record-keeping: employers must preserve wage, overtime, and attendance records for 5 years.

·      National floor wage to be fixed by Centre in consultation with states.

·      Social security coverage extended to gig and platform workers, funded by aggregator contributions.

·      Equal wages for men and women

·      Maternity leave increased from 12 to 26 weeks

·      Work-from-home provisions for women

·      Annual free health check-ups for workers aged 40+

·      A National Reskilling Fund for unemployed workers needing retraining.

WHAT CHANGED FROM DRAFT RULES?

DROPPED MINIMUM WAGE FORMULA:

 The earlier calorie/clothing/housing-based formula (from the 1991 Supreme Court Reptakos Brett case) was removed. Minimum wage criteria will now be separately specified by the Centre. Experts warn this could lead to lower wages and greater disparities across states.

MODEL STANDING ORDERS 2026:

 Applicable to mining, manufacturing, and services sectors; require detailed worker records including mobile number, email, and ESI number.

IMPACT ON STAKEHOLDERS

EMPLOYEES:

·      Payslips may show reduced take-home pay due to restructured wage definitions.

·      Gig workers gain statutory social security rights for the first time.

EMPLOYERS (ESPECIALLY MSMES & IT FIRMS):

·      Payroll structures must be reworked.

·      Compliance burden shifts to digital record-keeping.

·      Thresholds (100–300 workers) for certain provisions may affect hiring flexibility.

STATES ROLE

·      Central rules apply mainly to sectors under Union jurisdiction (telecom, banking, insurance, mines, ports, aviation, PSU contractors).

·      States must notify their own rules to complete implementation.

CONCLUDING THOUGHTS

India’s labour law overhaul is now legally in force, but its real-world impact will depend on how states implement their rules and how employers adapt payroll and compliance systems. For workers, especially in the unorganised and gig economy, this reform promises broader protections—though wage fairness remains a contested issue.

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,