India Brings New Labour Codes Into Effect to Modernize Workforce Regulations

New Delhi — India has announced the enforcement of four newly consolidated labour codes designed to modernize and simplify the country’s long-standing labour regulations.
The move marks a major shift in labour governance aimed at improving working conditions and supporting economic growth.

These new codes seek to unify and streamline decades-old laws that had become complex and difficult to navigate.
The government says the updated framework will make compliance easier while strengthening protections for workers across sectors.

According to the labour ministry, the codes aim to ensure better wages, improved safety measures, broader social security and more consistent welfare support for India’s vast workforce.
Officials say the reforms are intended to create a more balanced system that benefits both workers and employers.

For the first time, gig and platform workers have been formally defined under national labour rules.
This change is expected to help expand social security programs and address the needs of workers involved in app-based or digital platforms.

The labour ministry noted that the codes place unorganised workers, women, youth, migrant labourers and gig workers at the centre of India’s workforce policies.
The focus is on portability of benefits, stronger safety nets and greater protection of rights.

The overhaul originally received parliamentary approval in 2020, aiming to replace 29 existing labour laws with four simplified codes.
However, full implementation faced delays due to varied political responses and resistance from some trade unions.

The new labour codes coming into force include the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Code on Occupational Safety, Health and Working Conditions (2020).
Together, they redefine wage structures, work environments, safety standards and employee benefits.

Among the key changes are mandatory appointment letters for all workers, guaranteed minimum wages, annual health check-ups for workers above 40, and expanded opportunities for women to work night shifts across all sectors.
These measures are intended to strengthen transparency and ensure fair treatment in the workplace.

Although the reforms have been welcomed for aiming to bring clarity and uniformity, some experts argue that exemptions for smaller firms may limit the reach of these protections.
Concerns have also been raised about potential restrictions on workers’ rights to strike or access certain benefits.

Labour policy in India allows state governments to set their own labour laws, which has historically created significant variation across regions.
But the new federal codes will take precedence wherever conflicts arise, creating a more unified national framework.

Government officials say the updated labour system is essential for making India a more competitive and investment-friendly destination.
The reforms are part of a broader plan to support industrial growth and improve ease of doing business.

Labour Minister Mansukh Mandaviya said the new regulations are an important step toward India’s long-term economic goals.
He stated that the reforms will contribute to the country’s vision of becoming a developed nation by 2047.

As India continues to evolve its economic policies, the implementation of the new labour codes marks a pivotal moment.
The government aims for these changes to foster a fairer, safer and more future-ready labour environment across the nation.