In a landmark step toward modernising labour laws, the Indian government has officially implemented four consolidated labour codes. These codes that effect from 21st November 2025. These reforms merge 29 pre existing labour laws into coherent frameworks. These are designed to simplify compliance and enhance protection of workers.

Labour and Employment Minister Mansukh Mandaviya says, "These reforms are not just ordinary changes, but a major step taken by Prime Minister Shri Narendra Modi for the welfare of the workforce. These new labour reforms are an important step towards a self-reliant India and will give new momentum to the goal of a developed India by 2047.” in a post on his X account.

Overview & Key Features of the Four Codes

1. Code on Wages, 2019

o Consolidates four central laws: the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act.

o Establishes a universal minimum wage, doing away with “scheduled employment” restrictions under older laws.

o Introduces a floor wage (minimum across states), preventing states from setting wages below a national threshold.

o Ensures timely payment of wages and standardises the definition of “wages” across all codes, reducing litigation risk.

2. Industrial Relations Code, 2020

o Replaces older industrial disputes and trade union laws to simplify dispute resolution and collective bargaining.

o Introduces fresh mechanisms for dispute settlement, aiming at faster mediation and adjudication, while maintaining protections for workers in unionised sectors.

3. Code on Social Security, 2020

o Extends social security coverage to all workers, including in the unorganized sector, gig workers, and platform workers.

o Consolidates nine existing statutes (such as Employees’ Provident Fund Act, Gratuity Act, ESIC) under one umbrella.

o Creates a Social Security Fund specifically for welfare schemes benefiting unorganized and gig workers.

o Provides for more portable entitlements, allowing workers’ benefits to move with them across jobs and geographies.

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

o Incorporates 13 older laws (Factories Act, Mines Act, Building & Construction Workers Act, etc.) into a unified code.

o Mandates appointment letters/contracts to formalise employment and clarify wages, duties, and entitlements.

o Requires health check-ups, especially for workers over a certain age in hazardous industries, improving long-term health safeguards.

o Enables night shifts for women, with safety provisions, promoting gender equality in work hours.

Impact and Significance

• Ease of Doing Business: By consolidating fragmented, overlapping labour laws, the four labour codes drastically reduce regulatory complexity for employers.

• Inclusive Worker Protection: The reforms strengthen worker welfare, especially for informal, gig, contract, and migrant workers, by bringing them under formal labour protections and social security nets.

• Labour Market Modernisation: The codes reflect the realities of India’s evolving labour market. It highlights platform work to fixed-term employment and attempt to balance flexibility with worker rights.

• Compliance Focused: New roles like “inspector cum facilitators” are to guide employers rather than solely penalise them. It signals a shift from punitive oversight to supportive regulation.

Criticisms and Challenges

Although the reform is broadly welcomed, some experts have raised concerns regarding:

• These codes potentially weaken of the employee's right to strike.

•Increases the risk that small firms may be exempted or disadvantaged, depending on how state rules are framed.

•Enforcement depends heavily on state-level rule-making: though the central government has published draft rules, states must adopt them for the codes to function fully.

Conclusion

The implementation of the new four codes marks a turning point in India’s labour law landscape. By merging the 29 pre-independence laws into four comprehensive, modern frameworks, these reforms aim to foster a more transparent, inclusive, and efficient labour market. While the changes bring significant benefits: from minimum wages and social security to formal contracts and health protections; the ultimate impact will depend on state-level rule implementation, effective enforcement, and balancing flexibility with worker rights.

These four codes could well be among the most consequential reforms in Indian labour law since independence.