Recently, the government on Friday (November 21, 2025) notified all four Labour Codes and they replace 29 fragmented laws, some of them dating back to 1930s.
What are the four Labour codes?
The four Labour Codes
Code on Wages (2019),
Industrial Relations Code (2020),
Code on Social Security (2020)
The Occupational Safety, Health and Working Conditions (OSHWC) Code (2020)
Need for the reform – India’s old labour laws were too many, too complex, and outdated.
They increased the compliance burden and discouraged businesses from hiring.
Many workers, especially gig, platform, MSME, and migrant workers, had no uniform social security.
States had already begun reforming their labour laws, leading to fragmented rules.
What changes will take place for different worker groups?
Gig & platform workers
Legally defined for the first time.
Aggregators must contribute 1–2% of turnover (capped at 5% of payouts) to a welfare fund.
Commuting accidents are covered as employment-related.
Aadhaar-linked UAN enables portability of benefits across states.
Contractual workers
Health and social security benefits are ensured by the principal employer.
Free annual health check-ups.
Women workers
Equal pay and prohibition of gender discrimination.
Consent-based night work permitted with safety protocols.
Up to 26 weeks maternity leave, crèche facilities, medical bonus.
Parents-in-law included in the family definition.
Migrant workers
Equal wages and welfare benefits.
PDS portability.
Claims allowed for pending dues up to three years.
Double wages for overtime.
Sector-specific provisions
Covers workers across MSMEs, plantations, beedi and cigar, audio-visual, textile, mines, IT, hazardous industries, ports and export hubs.
Major benefits include regulated working hours, double overtime, appointment letters, safety standards, ESI coverage, PPE, annual health check-ups and stronger workplace protections
Fixed Term Employment
The Codes frame Fixed Term Employment as a tool to reduce contractualisation and increase direct employment.
Workers receive the same benefits as permanent staff.
Wages must be equal to permanent employees.
Gratuity eligibility starts after one year instead of five.
Leave, working hours and medical benefits are fully regulated.
The government argues that FTE promotes formalisation, shifts workers to company payrolls and expands social security coverage
What are the benefits gained from labour reforms in different states?
Gujarat
GSDP reached ₹25.63 trillion in 2023–24, growing 13.36% year-on-year.
Manufacturing’s share in GSDP stands at 28–30%, against the national average of 17%.
Punjab
GSDP grew at a CAGR of 9.43% between FY16 and FY24.
Expected to touch ₹8.02 lakh crore in FY25.
Attracted ₹1.25 lakh crore in investments, expected to generate 4.5 lakh jobs.
Bihar
GSDP projected at ₹9.76 lakh crore in 2024–25, a 13.5% rise over the previous year.
Maharashtra
India’s highest GSDP at ₹42 lakh crore in 2024–25.
5.5% annual growth.
₹1.4 lakh crore in new investments in the past year.
Organised manufacturing workforce grew by 3 lakh between 2010–11 and 2017–18.
Uttar Pradesh
Organised manufacturing employment up by 7.4 lakh workers (2014–15 to 2023–24).
Andhra Pradesh
GSDP for 2024–25: ₹16.41 lakh crore (12.5% growth).
