The Impact of India’s New Labour Codes on Employee Rights

Introduction to India's New Labour Codes

In November 2025, the Government of India (GoI) announced the enforcement of four significant labour codes aimed at modernizing and simplifying the regulatory framework governing employment. These include the Code on Wages (2019), the Industrial Relations (IR) Code (2020), the Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). The implementation date for these codes is set for 21 November 2025, and they will replace and consolidate a total of 29 existing labour laws into a unified system.

Key Features of the Labour Codes

The introduction of these labour codes presents several key features that aim to enhance worker rights and improve the overall employment landscape:

• Minimum Wage Rights: Establishment of a statutory right to minimum wages for all employees across organized and unorganized sectors.
• Gig Worker Benefits: Inclusion of provisions for workers in the gig economy, ensuring they have access to essential rights and benefits.
• Fixed-Term Employment Parity: Fixed-term employees will now enjoy the same wages and benefits as their permanent counterparts.
• 8-Hour Workday: Reaffirmation of the standard 8-hour workday with provisions for overtime compensation.
• Appointment Letters: Workers will receive appointment letters detailing their job roles, wages, and benefits for enhanced transparency.

Detailed Overview of Each Code

The four new labour codes encompass a wide array of reforms:

Code on Wages, 2019

This code merges four existing laws: The Payment of Wages Act, 1936; The Minimum Wages Act, 1948; The Payment of Bonus Act, 1965; and The Equal Remuneration Act, 1976. It establishes a statutory right to minimum wages and introduces measures to prevent delayed wage payments.

Industrial Relations (IR) Code, 2020

The IR Code allows for fixed-term employment contracts that offer parity in wages and benefits. Additionally, it introduces a re-skilling fund to aid retrenched employees and expands the definition of workers to include various categories of employees, ensuring broader coverage.

Code on Social Security, 2020

This code extends social security benefits to all workers, including those in the gig economy. It mandates coverage for life, health, and maternity benefits, creating a more inclusive safety net. The code also establishes a Social Security Fund to finance schemes for workers.

Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

With a focus on safeguarding worker rights, this code necessitates uniform registration for establishments and formal appointment letters. It also emphasizes safety committees in larger organizations and provisions for women's employment, promoting gender equality in workplaces.

Conclusion

The enforcement of these four labour codes marks a significant shift in India's approach to labour legislation. By consolidating existing laws and introducing new protections, the GoI aims to create a more equitable and efficient work environment for all employees. As these codes come into effect, they will undoubtedly reshape the landscape of employment in India, offering enhanced rights and benefits for workers across sectors.