What's Happening?
The Indian government has implemented four consolidated labour codes, effective November 21, 2025, to simplify and streamline labour laws. These codes include the Code on Wages, Industrial Relations Code,
Code on Social Security, and the Occupational Safety, Health and Working Conditions Code. The reform aims to modernize regulations, strengthen worker protections, and align India's labour framework with evolving employment structures. Key highlights include fixed-term staff receiving permanent-level benefits, formal recognition of gig and platform workers, expanded social security, and improved working-hour rules. The codes also introduce mandatory health checks, safety norms, and universal appointment letters.
Why It's Important?
The implementation of these labour codes is crucial for modernizing India's workforce regulations, promoting formalization, and ensuring timely wages. By expanding social security and reducing compliance burdens, the reform supports India's Aatmanirbhar Bharat initiative, aiming to build resilient industries and improve workforce productivity. The new framework addresses long-pending demands for simplicity and uniformity in labour laws, equipping industries for global competitiveness while expanding worker coverage across sectors.
What's Next?
The new labour codes aim to boost employment, skilling, and industrial growth by enhancing protections for women, youth, unorganized workers, and gig economy participants. The government plans to introduce a single registration and licensing framework, replacing multiple filings, and streamline dispute resolution via industrial tribunals. These reforms align with ESG goals, strengthening India's competitive and responsible economy.
