Govt Notifies 4 Labour Codes, Rationalises Existing Labour Laws

New Delhi: In a progressive labour-oriented reform in India, the Centre on Friday announced the implementation of four new labour codes that seek to simplify and streamline the existing decades-old laws in the country. In this landmark decision on labour laws, the government also said that the newly-implemented labour codes would ensure social security for all workers, including gig and fixed-term employees, statutory minimum wage, mandatory appointment letters for all employees, timely payment across all sectors and protections.

As per the government, the four labour codes such as code of wages (2019, Industrial Relations Code (2020), Code on Social Security (2020) and occupational safety, health and working conditions code (2020) which will be effective from Friday would replace 29 fragmented laws with a unified, modern framework. “The new labour codes will ensure better wages, safety, social security and welfare for the country’s workforce,” the ministry of labour said in a statement.

The reforms include expanded rights and safety for women, it said, including night-shift work, free annual health check-ups for workers aged over 40 years, pan-India ESIC coverage including hazardous process units, and a single registration, licence and return system. "The government will now initiate consultations to frame detailed rules and schemes. During the transition, provisions of existing labour laws will remain applicable wherever required,” it added.

Reacting to the announcement of these codes, Prime Minister Narendra Modi said in a series of posts on X, “It is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers. It also significantly simplifies compliance and promotes Ease of Doing Business.”

“It will build a future-ready ecosystem that protects the rights of workers and strengthens India's economic growth. These reforms will boost job creation, drive productivity and accelerate our journey towards a Viksit Bharat. Will serve as a strong foundation for universal social security, minimum and timely payment of wages, safe workplaces and remunerative opportunities for our people, especially Nari Shakti and Yuva Shakti...,” the PM said.

Labour minister Mansukh Mandaviya also said that the labour codes would formalise employment, strengthen worker protections, and make the labour ecosystem simpler, safer and globally aligned. “Modi government's guarantee: Dignity for Every Worker! From today, the new labour codes have been made effective in the country,” Mandaviya said on X.

Additional systemic reforms include a national floor wage, gender-neutral work policies, the Inspector-cum-Facilitator model for supportive compliance, faster dispute resolution through two-member tribunals, and a National Occupational Safety, Health (OSH) Board to harmonise safety standards.

The social-security coverage had expanded from 19 per cent in 2015 to over 64 per cent in 2025. The enforcement of the labour codes marks the next transformative step -- broadening worker protections, easing business operations and promoting a pro-worker labour ecosystem. “The codes lay the foundation for Aatmanirbhar Bharat. India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different,” the statement said.

The minister further said that the codes would guarantee minimum wages for all workers, appointment letters for the youth, equal pay and respect for women, social security for 40 crore workers, gratuity for fixed-term employees after one year of employment, free annual health check-ups for workers above 40 years of age, double wages for overtime, 100 percent health security for workers in hazardous sectors and social justice for workers as per international standards. #End#