Long awaited Labour Codes finally passed in government bid to modernise labour laws and boost workers’ safety, wellbeing and employment rights

In a move aimed at “enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work”, the Union Government has passed the much anticipated four new Labour Codes, rationalising 29 former separate Acts covering rules on occupational safety and health (OSH), social security, wages and industrial relations.  

The reforms include extending social security coverage and benefits to all workers, including gig and platform workers, with social security benefits for platform workers funded by a levy of 1-2 per cent on the annual turnover of aggregator platforms. The legislation will also introduce a number of new and expanded legal duties on employers in all industries aimed at ensuring safer working conditions and improving employee health, safety and wellbeing. For example, all employers must provide workers aged 40 or above with a free annual health check-up, while workers in hazardous industries will be entitled to health checks regardless of their age. 

In addition, women now have the legal right to work in all types of industries, when previously they were banned from certain industrial and hazardous work, like mining and the operation of heavy machinery. Also, the prohibition on women working night shifts in certain hazardous industries has been lifted – providing the employee consents to night work and the employer has adequate arrangements in place to ensure the workplace is safe and to provides female staff with a safe means of transport to and from the workplace during evenings and night hours. 

Also, women must be represented in workplace grievance addressal committees, businesses with more than 50 employees must provide creche facilities – either on-site or at another suitable location – so workers’ children can be cared for during working hours. In additrion, safety committees are now mandatory in businesses employing 500 people are more, with lower thresholds of 250 employees for building and construction companies and 100 for mining businesses.

The Union Government will also establish a single tripartite National Occupational Safety & Health (OSH) Advisory Board – featuring representation from trade unions, employer associations, and State Governments.

The board – which will replace six existing OSH advisory boards – will set national standards for occupational safety, health and working conditions in workplaces like factories, construction sites and mines that all states will be required to follow. The Union Government says this will ensure uniformity of OSH standards across the country by eliminating the existing state-wise variation in OSH rules, therefore promoting fairness, predictability and simpler compliance for businesses operating in multiple states.  

The four new codes – 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 – also include a number of new provisions aimed at enhancing “ease of doing business” and encouraging job creation. 

This includes simplifying the business registration and licensing framework by introducing a ‘Single Registration, Single Licence, and Single Return’ electronic registration framework. Under the new system, businesses seeking permission to operate will only have to complete a single electronic registration– compared to the previous six – and licenses will remain valid for five years. The threshold at which a license must be obtained to operate a factory has increased from 10 to 20 workers (with power) and from 20 to 40 workers (without power), and the workforce threshold at which businesses must seek government approval to lay off employees and close sites has increased from 100 to 300 workers.  

In a statement, the Ministry of Labour and Employment, said: “India’s new Labour Codes make labour laws simpler, fairer, and more in tune with today’s work environment. They protect workers’ rights, improve safety and social security, make it easier for businesses to comply with rules, and create more job opportunities in a growing economy.  

“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 (self-reliant India).” 

Prime Minister Narendra Modi also hailed the new codes, calling them “one of the most comprehensive and progressive labour-oriented reforms since Independence”. He added that the legal reform “greatly empowers our workers” and “significantly simplifies compliance and promotes ‘Ease of Doing Business.’”

Industry bodies and employer associations have generally welcomed the reforms, describing them as timely, worker-centric and essential for a modern economy.

Meanwhile, the Geneva-based International Social Security Organisation (ISSO) – which seeks to promote, support and encourage ethe provision of adequate social security coverage and benefits for workers globally – said: “India’s Labour Codes add momentum to global efforts for stronger, more inclusive social security systems. ISSA welcomes this milestone and encourages sustained investment in coverage, protection and institutional capacity.”

Gilbert F. Houngbo, director general of the International Labour Organization (ILO), meanwhile, stated on X that: “Social dialogue among govt, employers & workers will remain essential as reforms are implemented to ensure they’re positive for workers and business.”

However, trade unions reacted angrily to the news, with the Joint Platform of Central Trade Unions claiming the reforms represent “the blatantly unilateral implementation of anti-worker, pro employer labour codes”.

The Platform – a coalition of 10 Indian unions – described the codes as a “deceptive fraud committed against the working people of the nation”.

The unions added that their members have strongly opposed the reforms since they were first proposed in 2019, and argued that a general strike in July 2025, in which they claim 250 million workers participated, revealed the strength of opposition to the government’s reforms among the country’s workforce.

“In spite of the stiff resistance, the Union Government, dizzy with the victory in Bihar elections, has felt super empowered to make effective the four labour codes from today as per the media reports and tweets by the Ministry of Labour and Employment,” added the statement from the Joint Platform of Central Trade Unions.

The group of 10 unions subsequently organised nationwide protests against the reforms in 
late November.  

Although the four codes became law on 21 November, there will be a delay in formally implementing them as the Union and State governments are required to pre-publish the draft rules for public feedback first. Although no date has been set for their formal enactment, media reports suggest they may not be fully operational until 1 April 2026, to coincide with the beginning of the fiscal year.