India on November 21 rolled out its long-awaited labour law overhaul, implementing four new labour codes that promise minimum wages for all workers, appointment letters, social security coverage for gig workers, equal pay for women, gratuity for fixed-term employees after one year, and expanded workplace safety norms.
Announcing the reforms, Labour and Employment Minister Mansukh Mandaviya said the changes mark “a major step for the dignity of every worker”, aligned with India’s ambition to become a developed economy by 2047.
The Centre said the four labour codes replace and rationalise 29 existing laws, many of which date back to the 1930s–50s. The new framework seeks to modernise labour governance, improve worker protection and ease compliance for employers.
• Code on Wages, 2019
• Industrial Relations Code, 2020
• Code on Social Security, 2020
• Occupational Safety, Health and Working Conditions (OSH) Code, 2020
• Timely minimum wages for all workers
• Mandatory appointment letters for new hires
• Equal pay and equal opportunity for women, including permission to work night shifts with consent and safety measures
• Social security coverage for 40 crore workers, including gig and platform workers
• Gratuity for fixed-term employees after one year of service
• Free annual health check-ups for workers above 40 years
• Double wages for overtime
• Enhanced health and safety provisions, including 100 percent health security for workers in hazardous sectors
• International-standard protections ensuring dignity at work
Under the Code on Social Security, workers across formal, informal, gig and platform sectors are assured access to PF, ESIC, insurance and other benefits. ESIC coverage will now apply pan-India and is mandatory for any establishment employing even one worker engaged in hazardous processes.
The Code on Wages makes timely wage payment a statutory right, aimed at reducing financial stress and improving worker morale.
The reforms also mandate free annual health screenings for workers over 40 to promote preventive care.
The Centre said the codes significantly reduce compliance burden through:
• single registration
• single licence valid pan-India
• single return filing
A National OSH Board will be established to harmonise workplace safety standards, while safety committees will be compulsory for establishments with more than 500 employees.
Higher factory applicability thresholds will ease regulatory requirements for smaller units while retaining worker safeguards.
