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India’s new labour codes: From 29 laws to 4 – Are you operationally ready?

 08 Dec 2025

The 4 codes – One integrated reform

India has moved from 29 fragmented labour laws to 4 integrated codes designed to improve worker welfare while simplifying compliance for employers:​

  • Code on Wages, 2019 – Unified wage definition, national floor wage, universal minimum wages, strict payment timelines, capped deductions and mandatory wage slips.​

  • Industrial Relations Code, 2020 – Reshapes hiring–firing flexibility, dispute resolution and union relations, with higher thresholds for standing orders and smoother closure/retrenchment in certain cases.​

  • Code on Social Security, 2020 – Extends social protection to fixed-term, gig, platform and unorganised workers, with portability of benefits across states and sectors.​

  • OSH & Working Conditions Code, 2020 – Consolidates safety, health and welfare provisions across sectors, with mandatory safety committees and stronger compliance architecture.​

This is not just consolidation; it is a structural reset of how India regulates wages, work, safety and social protection.​

 

Who gains: From fixed-term to gig and MSME workers

A defining feature of the reform is its focus on new and vulnerable workforce segments:​

  • Fixed-Term Employees now receive parity with permanent staff, including gratuity after one year—unlocking flexible yet responsible workforce models.​

  • Gig and platform workers are formally recognised for the first time, with aggregators contributing a share of turnover towards welfare.​

  • Contract and MSME workers benefit from clearer accountability of principal employers for health, safety and social security, alongside guaranteed minimum wages.​

  • Women workers gain expanded protections, family benefits and representation in grievance and safety committees.​

This expands social security coverage dramatically, supporting a future‑ready and more formalised workforce aligned with India’s growth agenda.

 

Read more by downloading the full report below.