In a landmark reform effective November 21, 2025, the Indian government has consolidated 29 disparate labour laws into four comprehensive codes—the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions (OSH) Code 2020—aiming to modernise the workforce ecosystem for over 400 million workers across organised and unorganised sectors. Hailed by Prime Minister Narendra Modi as "one of the most comprehensive and progressive labour-orientated reforms since Independence", the implementation simplifies compliance for businesses, expands social security coverage from 19% in 2015 to over 64% today, and prioritises protections for vulnerable groups like gig workers, migrants, women, and youth. Despite years of delays due to state-level resistance and union opposition, the codes now mandate universal minimum wages, gender parity, and digitised entitlements, fostering a balance between ease of doing business and worker dignity amid India's push to become a $5 trillion economy.

The Code on Wages establishes a universal floor wage tied to minimum living standards, ensuring no state sets rates below this benchmark, while factoring in skills, geography, and job hazards for equitable pay structures. It prohibits gender-based discrimination in recruitment and remuneration, extending coverage to transgender workers, and mandates timely payments without unauthorised deductions for all employees regardless of salary thresholds. Overtime is compensated at double the ordinary rate, with employers held strictly liable for defaults; first-time minor offences face fines up to 50% of the maximum penalty instead of imprisonment, promoting decriminalisation while allowing compounding for repeat violations. This code, merging four legacy acts like the Minimum Wages Act 1948, directly benefits informal sectors previously outside its ambit, potentially raising wage floors and reducing exploitation in low-skill industries.

Under the Industrial Relations Code, fixed-term employment gains parity with permanent roles, including gratuity eligibility after one year and equal benefits, alongside a re-skilling fund funded by 15 days' wages per retrenched worker to aid transitions. Trade unions require 51% membership for sole recognition or form councils at 20% thresholds, while the worker definition expands to include supervisors earning up to ₹18,000 monthly and sales staff. Layoff approvals rise to 300 workers (with states able to increase further), strikes demand a 14-day notice to curb disruptions—including "mass casual leave"—and work-from-home is formalised in service sectors via mutual consent. Grievance committees ensure proportional women's representation, and two-member industrial tribunals expedite dispute resolutions, decriminalising minor infractions with penalties to streamline operations without eroding core rights.

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The Social Security Code broadens Employees' State Insurance (ESIC) to pan-India coverage, even for single-employee hazardous units, and includes gig and platform workers under a dedicated fund for life, disability, health, and old-age benefits, with provident fund enquiries capped at five years for resolution. Dependents now encompass maternal grandparents and a female employee's parents-in-law, while commute accidents qualify as employment-related for compensation; appeals against EPFO orders require only a 25% deposit of disputed amounts, easing employer burdens. Fixed-term staff access early gratuity, and wages for calculations include basic pay, dearness allowance, and retaining allowances, ensuring broader portability of benefits across states and sectors to integrate informal labour into formal safety nets.

Finally, the OSH Code permits women to work night shifts (before 6 a.m. or after 7 p.m.) with consent and safeguards, mandates free annual health check-ups—especially for those over 40—and caps normal hours at eight daily or 48 weekly, with overtime needing worker approval at double pay. Interstate migrant workers, including self-migrated or contractor-employed, gain a national database for job access and benefits, while appointment letters detailing roles, wages, and securities enhance transparency. Establishments with 500+ workers must form safety committees with equal employer-employee representation, and courts can allocate at least 50% of fines from violations to victims or heirs. These provisions, alongside national safety standards, address occupational hazards in evolving industries like manufacturing and construction, potentially reducing workplace fatalities reported at over 1,700 annually by the Ministry of Labour.

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