Government Makes the Four Labour Codes effective to Simplify and Streamline Labour Laws, ensuring social justice for all workers

Government Makes the Four Labour Codes effective to Simplify and Streamline Labour Laws, ensuring social justice for all workers

Ministry of Labour and Employment Labour Codes: India has taken a historic step toward improving the Indian work culture. Government of India has officially made all four Labour Codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020) — effective from 21 November 2025, replacing and simplifying 29 existing labour laws.

Ministry of Labour & Employment announced that this move aims to streamline labour regulations, enhance workers’ rights, and prepare industries for a modern and competitive economy.

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The reforms mark the end of fragmented, outdated labour laws that were originally created between the 1930s and 1950s. By combining them into four simplified codes, the government intends to ensure better wages, stronger safeguards, and wider social security for workers, while reducing compliance burdens for employers.

Labour Codes are designed to make India’s workforce more secure and future-ready — a significant step in building an Aatmanirbhar Bharat.

With these reforms taking effect, several key changes now become legally binding across sectors. All workers are entitled to mandatory appointment letters, timely wage payment, minimum wages, and social security benefits, including PF, ESIC, and insurance.

Employers must provide free annual health check-ups for workers above 40 years, marking a shift toward preventive healthcare in the workplace. Women are now permitted to work in night shifts and all occupations, including mining and hazardous industries, subject to safety conditions — a major boost to equal employment opportunity.

The Codes also expand legal protection to groups that previously fell outside traditional labour coverage. Gig and platform workers, fixed-term employees, contract workers, audio-visual artists, IT staff, dock workers, export sector employees, and plantation workers are explicitly covered for the first time. Portable benefits through an Aadhaar-linked Universal Account Number will ensure seamless access to welfare schemes even when workers migrate across states.

Industries are expected to benefit as well. Instead of navigating multiple licences and filings under different laws, companies will now operate with a single registration, single licence, and single return.

The new Inspector-cum-Facilitator system and Industrial Tribunals for faster dispute resolution are expected to reduce compliance stress and improve efficiency for businesses, especially MSMEs.

Over the past decade, India has expanded social-security coverage from 19% of the workforce in 2015 to more than 64% in 2025. The rollout of the Labour Codes is projected to take this progress further, cementing protections for workers while supporting employment generation and growth.

The reforms place women, youth, migrant workers, and gig workers firmly at the centre of labour governance — and aim to build industries that are not only productive, but also safe, accountable, and globally competitive.

With this milestone decision, India enters a new chapter of labour reform — one built on better wages, stronger welfare, safer workplaces, and simplified laws, setting the stage for a more inclusive and resilient workforce in the years ahead.