New Delhi: The Centre on Friday implemented four labour codes that replace 29 existing labour laws, paving the way for one of the most sweeping workplace reforms since Independence. The move aims to strengthen workers’ rights, expand social security and simplify regulations to support India’s struggling manufacturing sector.
The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 have now come into effect. With these changes, the government hopes to build a modern and protected workforce equipped for future economic demands.
The new framework mandates appointment letters for all workers and guarantees a minimum wage across sectors. It extends social security to everyone, including gig and platform workers, and makes timely wage payments compulsory. Women will now be allowed to work night shifts across all industries, subject to safety conditions.
The most debated provision concerns working hours. Amid fresh public discussions over long workweeks, the codes set a clear limit of eight hours per day and 48 hours per week. Overtime will require the worker’s consent and must be compensated at double the normal wage.
Implementation had been delayed for years despite Parliament passing the codes in 2020. Twenty states had already framed their rules, but the Centre held back amid strong resistance from labour unions and Opposition parties. The new rules also require annual health check-ups for workers above 40 years of age.
Officials said social protection benefits will now reach every worker. Coverage under ESIC, which was previously selective and excluded small establishments, will be expanded. Hazardous workplaces will also receive uniform ESIC protection under the new system.
Prime Minister Narendra Modi welcomed the rollout, calling it one of the most progressive labour reforms in decades. He said the codes would empower workers while reducing compliance burdens on industries. Labour Minister Mansukh Mandaviya said the changes would uphold dignity at work by ensuring minimum wage payments, appointment letters, social security for 40 crore workers and gratuity benefits for fixed-term employees after one year of service.2
The codes promise double wages for overtime, full health security for workers in hazardous sectors and stronger labour justice aligned with global norms. UNICEF has expressed support for the strengthened protections.
The reforms are expected to benefit the manufacturing sector, which has long struggled with outdated laws and currently contributes less than 20 percent to India’s $4 trillion economy. Officials believe these changes could help accelerate industrial growth.
A significant milestone is the legal recognition of gig and platform workers. India has around 12 million gig workers as of 2024–25, and NITI Aayog estimates the number could reach 23.5 million by 2029–30. The new codes extend social protection to this fast-growing workforce for the first time.
The changes also raise the threshold for seeking prior government approval for layoffs, increasing it from 100 to 300 employees. Other provisions include a national floor wage, gender-neutral work environments, an inspector-cum-facilitator for supportive compliance, quicker industrial dispute resolution and a National Occupational Safety and Health Board responsible for uniform safety standards.
With the codes now operational, the Centre will begin consultations to finalise the detailed rules that employers and workers must follow.
