On November 21, 2025, India hit reset on its labour laws in a way nobody’s seen since independence. The government rolled out four big new labour codes, sweeping away 29 old rules about everything from paychecks to safety at work.
Prime Minister Narendra Modi called it “a historic day for my worker brothers and sisters.” He said these new codes will make life easier for workers and businesses alike. That’s the pitch. But behind all the noise and big speeches, this is about real people — the factory worker pulling a double shift, the gig worker hustling deliveries, the woman balancing her job and her family, and even the employers trying to keep up with a fast-changing world.
So, what exactly do these four labour codes change? And how do they stack up against the old system? Let’s dig in and see what this means for everyday life.
what are these four new Labour Codes people keep talking about? Here’s the quick rundown:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions (OSHWC) Code
Let’s break down what all this actually means for everyday folks.
Code on Wages — What’s Changed?
First, there’s now a national floor wage. That’s just a fancy way of saying: no matter where you work in India, there’s a set minimum wage nobody can go below. States can pay more, but not less.
Then, you’re supposed to get your wages on time. Seriously, it’s a legal requirement now—no more endless waiting for your paycheck.
Every worker gets a written appointment letter. Earlier, this was a bit of a wild west situation. Now, it’s official—you get your job details in writing.
And if you’re clocking in extra hours? Overtime pay is set at double your normal rate. No more vague promises or confusion—work more, get paid more, period.
Picture a delivery rider hustling from morning till night, or a factory worker picking up extra shifts. Under the new code, things actually start to look up for them. There’s a minimum wage floor, so pay is more reliable, and overtime brings in more money. When they land the job, they get a written appointment letter. Not just a handshake or a vague promise—something real, something they can show to clear up exactly what they’re owed and what their job is.
Before all this, wage laws were scattered across different acts—like the Minimum Wages Act, the Payment of Wages Act, and others. No single national standard, no guarantee of written contracts, and pay structures were all over the place. Rules changed depending on where you worked, what you did, or which state you lived in. The whole thing was messy and confusing.
Now, about the Industrial Relations Code—here’s what’s changed. Companies can lay off or retrench workers more easily, since the threshold for doing it without government approval jumped from 100 to 300 employees. If someone does get retrenched, they don’t just get left hanging. There’s a reskilling fund that hands out 15 days’ wages to help them retrain. Fixed-term workers also catch a break. Say you’re on a one-year contract—you now qualify for gratuity after just a year, not five.
Strikes and disputes get a more organized system too. Unions still have a voice, and there’s a two-member tribunal to sort things out faster. And with work-from-home on the rise, the code officially recognizes WFH arrangements, especially in the services sector.
Think about Raj, a technician signed on for two years. Before, unless he stuck around for five years, he’d leave without gratuity. Now, after just one year, he’s eligible. Or Meera, a manager who’s suddenly out of a job after her department shuts down—she gets help to learn new skills. Union leaders also get a clearer path: disputes don’t just drag on and on anymore; there’s a set tribunal to hear them out.
For businesses, especially those mid-sized factories with 200 workers, life gets simpler. They don’t have to wrestle with endless paperwork just to downsize. It gives them more flexibility, though unions are worried about what that means for job security.
Before (old laws):
Old industrial relations laws were all over the place. Layoffs, retrenchment, firings, union rights, disputes—each had its own rules, and they changed depending on the industry or even which state you were in. This patchwork made life tough for everyone. Workers and employers had to navigate a maze of red tape. There wasn’t much unity. And if you were a fixed-term worker, you just didn’t get the same benefits as regular employees. The new codes are trying to fix that.
- Code on Social Security
What’s new:
- Gig and platform workers finally count: The law actually recognizes gig workers now. Think delivery riders, app drivers—they’re officially covered. They get social security benefits just like everyone else.
- Universal coverage: More workers—migrants, contract laborers, you name it—now fall under the social security umbrella.
- Social security fund: Companies that run these platforms might have to chip in to a fund supporting gig workers.
- Portability: If you switch jobs or move to a new state, your benefits go with you. Pension, social welfare—they’re not stuck in one place anymore.
Human impact:
Take Priya, who delivers food for an app. Before, she had nothing to fall back on—no insurance, no retirement, no safety net. Now, she’s officially recognized. She gets social security, access to benefits, and her work is finally seen as real work. It’s the same for a migrant laborer who moves states for construction work. Their rights are more secure now; they’re actually protected. It’s a big psychological shift—no more feeling invisible or stuck outside the system.
Before (old laws):
Social security used to be a mess. Unorganized workers—especially gig workers—just didn’t fit into the old framework. Benefits like a provident fund or ESI? Not for them. If you worked casually, on a contract, or through an app, you were usually on your own.
- Occupational Safety, Health & Working Conditions Code (OSHWC)
What’s new:
- One-stop shop: Businesses just need one registration, one license, and one return. That’s it. Way less paperwork.
- Safety for everyone: Even if a dangerous industry only hires one person, those safety rules still apply.
- Free health check-ups: If you’re over 40, you get a free medical check-up every year.
- Flexible work hours: The code lets you work anywhere from 8 to 12 hours a day, as long as you don’t go over 48 hours a week. Overtime? That pays double.
- Women can work nights: Women can legally take night shifts in any sector, as long as they agree and safety is taken care of.
- Inspectors now help, not just punish: Labour inspectors don’t just show up to catch mistakes—they’re supposed to help and guide workers and employers too.
Human impact:
Picture Suresh, working in a small chemical factory. Before, if his plant was tiny, safety rules might have been ignored. Now, even the smallest workplaces have to set up safety committees, run health checks, and stick to clear rules. For Geeta, who works in a textile factory, night shifts used to be off-limits or hush-hush. With the new code, she can take those shifts legally, with proper safeguards in place.
Safety’s important, sure, but consent matters just as much—and now, more people actually have a say. On top of that, registering a business has become way less of a headache for small employers. Less paperwork, fewer hoops, more time to get real work done.
Back in the day, workplace safety laws were a mess. Different states had their own rules, and most of them were written decades ago. Registration, inspections, licensing—it all changed depending on your industry and location. This patchwork made life tough for small businesses trying to play by the rules, and honestly, it was just as hard for the people meant to enforce those rules.
Why does the new system matter? Well, a few reasons jump out:
- Things are simpler now. The government took 29 laws and boiled them down to just four codes. The whole system’s easier to follow, and it actually works online.
- More workers get protection. Gig workers, platform workers, folks on fixed-term contracts—people who were invisible under the old system—now have legal rights and benefits.
- Businesses get breathing room. Especially the smaller ones. They can hire and manage people without drowning in red tape.
- Worker rights are clearer and stronger. Minimum wages, social security, safety, health—these aren’t optional anymore.
But, let’s be honest, not everyone’s celebrating. Unions and critics worry this could chip away at workers’ power. They point out that raising the layoff threshold from 100 to 300 employees makes it easier for companies to fire people without much oversight. There’s also the question of follow-through—will every worker really get that appointment letter? Will overtime rules actually stick, especially in tiny outfits?
Let’s look at how all this plays out for real people:
First, meet Rajni. She’s 23, rides her bike delivering food all over the city. Before the new rules, she got paid whenever, never had a proper contract, and if she got sick, well, tough luck. Now, she has a job letter, a guaranteed minimum wage, and she’s covered by a social security fund. Suddenly, she feels like a worker with actual rights. If she gets hurt or sick, she has real backup.
Then there’s Ramesh. He’s been in a small manufacturing unit for half a year. Before, there was no promise of gratuity, his hours were all over the place, and health checks weren’t even on the radar. Now? The OSHWC code means his boss has to give him a free checkup (he’s over 40), keep the place safe, and pay proper overtime. When he started, they handed him an appointment letter. Just a piece of paper, really, but it made him feel seen and respected.
These aren’t just new rules—they’re changes that people feel, day to day.
Why This Reform Matters — For Everyone
For workers—especially folks in informal or gig jobs—these new codes bring some basic dignity. Getting an actual appointment letter, social security, and a real guarantee of wages means people can finally plan ahead instead of guessing what’s next.
For women, there’s a much-needed shift. The chance to work night shifts (safely) and the push for equal pay aren’t just box-ticking steps. They open doors that were mostly closed before.
Employers, especially new businesses, catch a break too. Less red tape, simpler registration, and inspections that don’t eat up all their time mean they can actually focus on growing instead of just dodging paperwork.
And for the bigger picture—India’s economy—this whole overhaul lines up with the goal of a “future-ready workforce.” It’s about being competitive globally, but not at the cost of worker welfare. That’s the idea behind Aatmanirbhar Bharat: self-reliant, but fair.
What’s Standing in the Way
No law works if it just sits on paper. There are some real hurdles ahead:
State governments need to actually adopt and enforce these codes, not just nod along. Small businesses—especially the really tiny ones without proper HR teams—need help following the rules, not just more rules to follow. Gig workers, whose schedules are all over the place, deserve to be properly registered and get their social security. Labour inspectors need to shift gears—from being strict enforcers to acting more like guides who help people get it right. And workers themselves need to know what’s changed—how to claim benefits, how to speak up if things aren’t safe. If no one knows their rights, what’s the point?
A New Deal for Work in India
These four labour codes aren’t just a legal update. They’re about reshaping how we see work in India—not just a transaction, but a relationship built on promise, protection, and dignity.
For a lot of people, this is personal. It’s about finally getting proof you have a job. Earning a wage that actually supports you. Having social security, even if your job isn’t permanent or traditional. Not having to choose between safety and work.
Of course, there’s a risk this all stays on paper, especially if enforcement falls short or people cut corners. But if India gets this right, these reforms set the stage for something bigger: work that’s not just about getting by, but about building a real future. Like the Prime Minister said, these aren’t just laws—they’re the foundation for a workforce that’s ready for anything.
