Labour Codes in India
We handle matters pertaining to Employment Laws, Pan India, including Supreme Court and all the High Courts in India
Advisory on New Labour Codes
Devising and Audit of Salary Structure as per Labour Codes
Employees' Provident Fund (EPF)
Code on wages, 2019
Employment Lawyers In India
Gig Workers
Building and Other Construction Workers (BOCW)
Salary structure under the Labour Codes
Maternity Benefits Under India's Labour Codes
The Code on Social Security, 2020 (SS Code)
Occupational Safety, Health and Working Conditions (OSH) Code, 2020 in India
Industrial Relations Code 2020
Fixed Term Employment
Gratuity
Employees' State Insurance
All You Need to Know About The Labour Codes
India’s labour codes viz. The Code on Social Security, 2020; The Code on Wages, 2019; The Occupational Safety, Health and Working Conditions Code, 2020; and The Industrial Relations Code, 2020 represent a structural shift in the regulation of wages, labour relations, and workforce management. They redefine principles governing salary structure, salary restructuring, working hours, and statutory entitlements. The codes consolidate and rationalise provisions relating to gratuity, provident fund (PF), Employees State Insurance (ESI), and broader social security obligations. Special attention is given to modern employment arrangements such as fixed term employment (FTE), ensuring parity of benefits and compliance clarity. Together, the labour codes aim to balance worker protection with business flexibility, reshaping employment law, compliance strategies, and industrial relations across sectors.
Overview of Labour Codes in India
India's labour laws underwent a major reform with the consolidation of 29 existing central labour laws into four comprehensive labour codes. These codes were enacted between 2019 and 2020 and came into effect on 21 November 2025. As of January 2026, the codes are in force, but full operationalisation awaits final notification of central and state rules (draft rules were notified in late 2025, with implementation targeted for April 2026). During this transition, provisions from repealed laws continue to apply where necessary.The reforms aim to simplify compliance, enhance worker protections, expand social security, promote ease of doing business, and address modern employment forms like gig work and fixed-term contracts.
The Four Labour Codes:
- * Year Enacted
- * Key Laws Consolidated
- * Main Objectives and Features
- * Code on Wages 2019
4 laws (e.g., Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act)
- * Uniform definition of wages (basic + dearness + retaining allowance; allowances capped at 50% of total pay).
- * National floor wage and timely payment.
- * Applies minimum wages universally.
- * Covers bonus provisions.
Industrial Relations Code
2020
3 laws (e.g., Trade Unions Act, Industrial Disputes Act, Industrial Employment (Standing Orders) Act)
- * Easier resolution of industrial disputes.
- * Higher thresholds for layoffs/retrenchment (300+ workers).
- * Recognises fixed-term employment with parity in benefits.
- * Regulates trade unions and strikes.
Code on Social Security 2020
9 laws (e.g., EPF Act, ESI Act, Gratuity Act, Maternity Benefit Act)
- * Extends social security (PF, ESI, gratuity) to unorganised, gig, and platform workers.
- * Provident fund (PF) and employees state insurance (ESI) portability.
- * Pro-rata gratuity for fixed-term workers after 1 year (vs. 5 years previously).
- * Aggregators contribute to social security funds for gig workers.
Occupational Safety, Health and Working Conditions Code
2020
13 laws (e.g., Factories Act, Contract Labour Act, Inter-State Migrant Workmen Act)
- * Uniform standards for safety, health, and working hours.
- * Annual health checks mandatory in some sectors.
- * Improved protections for migrant and contract workers.
- * Single registration for establishments.
Key Impacts For Workers: Greater protections, universal minimum wages, expanded social security, reduced disputes, and benefits like gratuity and bonus on par with permanent employees.
For Employers: Simplified compliance (fewer returns/registers), but potential higher costs due to broader wage definitions affecting PF, gratuity, and ESI contributions.
Challenges: Industry concerns over increased hiring costs; trade unions have criticised the codes as anti-worker, planning protests.
These codes mark a shift towards a more flexible, inclusive, and modern labour framework, aligning India with global standards while aiming for formalisation and worker welfare. Employers and HR teams should monitor rule notifications for precise compliance updates.