India’s labour system was stuck in old rules for many years with 29 different laws, each with its own forms, documents and offices. Employees often had no idea which rule actually protected their rights, and employers spent more time doing paperwork than running their business.
Most of these laws were written before or just after independence, and they simply didn’t match the needs of today’s modern, digital economy.
The government took the biggest decision, repealing all 29 laws and implementing just four labor codes. This isn’t just a change, but a rebuilding of the labour system. A new framework that makes things easier, clearer, and safer for both workers and industry.
These four new codes have come into effect from November 21, 2025:
- Wage Code, 2019
- Industrial Relations Code, 2020
- Social Security Code, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
Old system vs. new system: What’s the real change?
- Now every worker gets an appointment letter—previously optional, now mandatory. Previously, joining letters were merely a formality. Now, it’s a legal right. This will make employment transparent and maintain clear employment records.
- For the first time, a minimum wage guarantee for all workers was previously applicable only to select industries. Now, every worker is entitled to it.
- Social security for all workers—gig and platform workers, too, previously had no such protection. PF, ESIC, life insurance, and other benefits will now be available.
- Free health checkups for employees aged 40 and over were previously not mandatory.
- Paying salaries on time is now a legal requirement, increasing job stability and trust.
- Women are allowed to work in night shifts and in all jobs. Previously, this was restricted in many places. Now, with consent and security measures in place, they can work in all roles.
- ESIC coverage was previously only applicable in select areas across the country.
- Multiple registrations and licenses have now been replaced by a single system: one registration, one return, and one license.
What benefits will the 15 types of workers receive?
Fixed Term Employees (FTE):
- All benefits like permanent employees in just 1 year
- Gratuity
- Medical and social security benefits
- Promotion of direct hiring.
Gig workers (Uber, Swiggy, Zomato, delivery, etc.)
- Recognised in law for the first time.
- Aggregators will have to contribute 1–2 per cent.
- Universal Account Number (Uber, Swiggy, Zomato, etc.)
- Benefits will not stop even if you change states.
- Entitled to gratuity
- Health and social security benefits
- Equal rights in fixed-term employment.
- Equal pay for equal work
- Night shifts allowed
- Safety measures mandatory
- Women’s representation in grievance committees.
- In-laws included in the family definition.
- Minimum wage guaranteed
- Appointment letter
- Compulsory leave pay
- Improved job security.
- Minimum wage
- Timely pay
- Standard working hours
- Double overtime and facilities like drinking water and rest areas.
- 8–12-hour shifts.
- Right to double overtime bonus.
- ESIC medical facilities
- Children’s education
- Chemical-related safety training
- Safety equipment are mandatory.
Digital and audio-visual workers
- Journalists, stunt artists, dubbing artists
- Appointment letters
- Timely pay
- Double overtime.
- Free annual health checkups
- 8–12-hour shifts
- New safety standards
- Accidents during travel will be considered job-related.
Hazardous industry workers
- On-site safety committee
- Annual health checkups
- Equal opportunities for women
- Safety guidelines are mandatory.
- Equal pay
- All benefits for migrant workers.
- Double pay for overtime.
- Claims for pending dues for up to 3 years.
- Salary by the 7th.
- Timely resolution of night shift disputes.
- Social security benefits for women.
- Formal identification
- PF-Pension-Insurance
- Annual health checkups
- Medical and safety facilities.
- Gratuity
- Provident Fund (PF)
- Social security
- Leave option after 180 days
- Timely pay
- Women can work in night shifts.
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