Four Labour Codes Implementation for Workers, Employers & MSMEs (2025)

On 21 November 2025, the Government of India officially implemented the Four Labour Codes, replacing 29 old and fragmented labour laws. This marks one of the biggest labour reforms in India’s history—focused on better wages, stronger social security, safety, flexibility, women empowerment, and simplified compliance.

The Four Labour Codes Implementation include:

1. Code on Wages, 2019
2. Industrial Relations Code, 2020
3. Code on Social Security, 2020
4. Occupational Safety, Health and Working Conditions Code (OSHWC), 2020

This blog covers each code in detail, along with major changes highlighted in the official release.

Why the Four Labour Codes Were Needed

India’s labour laws were originally framed in the 1930s–1950s, scattered across 29 Acts. These outdated laws could not keep pace with:

• New employment models
• Expanding gig work
• Digital economy
• Social security needs
• Safety standards

The labour codes implementation brings transparency, uniformity, and a future-ready labour ecosystem aligned with global standards.

Before vs After Four Labour Codes Implementation

Aspect	Before Labour Codes	After Labour Codes Implementation
Appointment Letters	Not mandatory	Mandatory for all workers
Minimum Wage	Only for scheduled industries	Applicable to all workers
Social Security	Limited coverage	PF, ESIC, insurance for all workers including gig & platform
Health Check-up	Not mandatory	Free annual check-up for workers aged 40+
Women Employment	Restrictions in night shifts	Allowed in all sectors with consent & safety
Compliance	Multiple licences & returns	Single registration, single licence, single return
ESIC	Restricted areas	Pan-India expanded coverage
Wage Payment	Inconsistent	Strictly enforced timely wage payment

Detailed Breakdown of the Four Labour Codes

1. Code on Wages, 2019

The Code on Wages merges:

• Minimum Wages Act
• Payment of Wages Act
• Payment of Bonus Act
• Equal Remuneration Act

Key Provisions

• Minimum wages now apply to all workers, across all industries.
• Introduction of a National Floor Wage to prevent exploitation.
• Mandatory timely wage payment, improving financial security.
• Gender-neutral wage regulations—no discrimination allowed.

Benefits

• Ensures uniform wage protection.
• Reduces wage disputes.
• Beneficial for MSMEs, youth workers, migrant workers, and unorganised sector.

2. Industrial Relations Code, 2020

This code consolidates laws related to:

• Trade unions
• Employment conditions
• Dispute resolution
• Layoffs, retrenchment, and closure norms

Key Provisions

• Faster dispute resolution through two-member Industrial Tribunals.
• Provision for Fixed-Term Employment (FTE) with full benefits.
• Strikes require 60-day notice, reducing disruptions.
• Improved transparency in industrial relations.

Benefits

• Promotes smoother employer–employee relations.
• Encourages investment, job creation, and formal employment.
• Reduces excessive contractualisation.

3. Code on Social Security, 2020

This is the most transformative code, expanding social security across India.

Key Provisions

• PF, ESIC, maternity, insurance & pension benefits extended to all workers, including:
  • Gig workers
  • Platform workers
  • Contract workers
  • Fixed-term employees
• Aggregators must contribute 1–2% of annual turnover for gig/platform workers.
• Universal Account Number (Aadhaar-linked) for portability of benefits.
• Gratuity for FTEs after 1 year (earlier 5 years).
• ESIC expanded Pan-India; mandatory even for units with 1 hazardous-role worker.

Benefits

• Social protection reaches unorganised and digital workforce.
• Ensures financial stability & healthcare coverage.
• Reduces employment insecurity due to migration or job shifts.

4. Occupational Safety, Health & Working Conditions Code (OSHWC), 2020

This code integrates 13 old laws related to working conditions and safety.

Key Provisions

• Standardised safety norms across industries.
• Free annual health check-up for workers above 40 years.
• Women allowed in all work types (including hazardous jobs) with safety measures.
• Mandatory welfare facilities like:
  • Canteen
  • Drinking water
  • Rest areas
  • First-aid and sanitation
• Mandatory safety committees for units with 500+ workers.

Benefits

• Promotes worker well-being and accident prevention.
• Strengthens safety in hazardous, mining, manufacturing, and dock industries.

Source Url: https://labour.gov.in/sites/default/files/pib2192463.pdf

Sector-Wise Impact of Labour Codes Implementation

Fixed-Term Employees (FTE)

• Full benefits equal to permanent staff
• New Labour Codes Gratuity Rule : Gratuity after 1 year
• Leave, PF, ESIC included
• Better job security

Gig & Platform Workers

• Recognised legally for the first time
• Social security fund supported by aggregators

Women Workers

• Night shift allowed
• Equal pay protection
• Parents-in-law included in “family” definition

Youth Workers

• Minimum wage guaranteed
• Appointment letters mandatory

MSME Workers

• Access to facilities like rest areas & canteens
• Timely wages
• Standard working hours

Plantation, Beedi, Textile, IT/ITES, Hazardous, Mine & Dock Workers

Huge improvements in:

• Safety
• Wages
• Working hours (8–12 hrs/day)
• Social security
• Medical check-ups
• Overtime regulations
• Compliance simplification

Additional Reforms Under All Four Codes

• Gender-neutral jobs including for transgender employees
• Inspector-cum-Facilitator system to guide instead of penalise
• National OSH Board to set uniform safety standards
• Single registration, licence, and return for all compliances
• Legal recognition for migrant workers with portable benefits

Conclusion

The Four Labour Codes implementation is a landmark transformation in India’s labour landscape. It modernises regulations, enhances worker protection, simplifies compliance, and aligns India with global labour standards.

With expanded social security, minimum wage coverage, women empowerment, improved safety norms, and the revolutionary 1-year gratuity rule, these reforms support a future-ready, productive, and protected workforce.

Download Four Labour Codes Implementation Pdf

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