Government Brings 4 Labour Codes into Effect to Modernise Labour Laws

The Government of India has notified the implementation of 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, all of which will come into force from November 21, 2025. 

Key Changes and Updated Provisions 

The 4 Codes consolidate 29 central labour laws into a single system meant to reflect current workforce requirements and reduce complexity. The measures introduce mandatory appointment letters for all workers and formalise a national floor wage. The framework replaces the inspection-led model with an inspector-cum-facilitator approach intended to blend compliance with guidance.  

A single registration, single licence and single return system has been created for safety and working-condition requirements. Social security coverage now extends to gig and platform workers under the Code on Social Security 2020, with national coverage rising from 19% of the workforce in 2015 to 64% in 2025. 

Rationale for the Overhaul 

The earlier labour laws, originally drafted between the 1930s and 1950s, had become fragmented and outdated. The new Codes aim to modernise labour governance by strengthening worker welfare, reducing the compliance burden on industry and addressing changes in employment formats. The reforms are also designed to build an integrated regulatory structure capable of supporting a resilient industrial ecosystem. 

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Conclusion 

The enforcement of all four Labour Codes from 21 November 2025 marks a major update to India’s labour framework. By unifying multiple legislations and widening social security coverage, the new system seeks to establish a clearer and more contemporary structure for both employers and workers. 

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