The Centre on Friday announced that the four Labour Codes have come into effect, starting today i.e., 21st November 2025. These 4 Labour Codes are – 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.
These four Labour Codes have rationalised 29 existing labour laws. “By modernising labour regulations, enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat,” according to the Ministry of Labour & Employment.
Among the many landmark decisions that are part of these 4 Labour Codes, the government has said that under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage. “All workers will get PF, ESIC, insurance, and other social security benefits,” the ministry said.
The government said that many of 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. While most major economies have updated and consolidated their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 central labour laws, it added.
These restrictive frameworks, according to the government, struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty and increasing compliance burden for both workers and industry.
“The implementation of the four Labour Codes addresses this long-pending need to move beyond colonial-era structures and align with modern global trends. Together, these Codes empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work — paving the way for a more resilient, competitive and self-reliant nation,” the labour ministry said in a statement.
Benefits of Labour Reforms Across Key Sectors:
1. Fixed-Term Employees (FTE):
FTEs to receive all benefits equal to permanent workers, including leave, medical, and social security.
Gratuity eligibility after just one year, instead of five.
Equal wages as permanent staff, increasing income and protection.
Promotes direct hiring and reduces excessive contractualisation.
2. Gig & Platform Workers:
‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time.
Aggregators must contribute 1–2% of the annual turnover, capped at 5% of the amount paid/payable to gig and platform workers.
Aadhaar-linked Universal Account Number will make welfare benefits easy to access, fully portable, and available across states, regardless of migration.
3. Contract Workers:
Fixed-term employees (FTE) will increase employability and ensure social security, legal protection like benefits equal to permanent employees.
Fixed-term employees will become eligible for gratuity after one year of continuous service.
Principal employer will provide health benefits and social security benefits to contract workers.
● Workers to get free annual health check-up.
4. Women Workers:
Gender discrimination legally prohibited.
Equal pay for equal work ensured.
Women are permitted to work night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and mandatory
safety measures.
Mandatory women’s representation in grievance redressal committees
Provision to add parents-in-law in Family Definition of Female employees, expanding dependent coverage and ensuring inclusivity.
5. Youth Workers:
Minimum wage is guaranteed for all workers.
All workers to get appointment letters, – promoting social security, employment history and formal employment.
Worker exploitation by employers is prohibited—payment of wages during leave has been made mandatory.
To ensure a decent standard of living, workers will receive wages as per the floor wage determined by the Central Government.
