Implementation of India’s Four Labour Codes: Key Changes and the Road Ahead

On November 21, 2025, the Ministry of Labour and Employment issued notifications operationalizing substantial portions of India’s four labour codes i.e. the Code on Wages, 2019 (“Wage Code“); the Industrial Relations Code, 2019 (“IR Code“); the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code“); and the Code on Social Security, 2020 (“SS Code“). These Codes were originally enacted to consolidate 29 (twenty-nine) central labour laws into a more coherent and modern framework. The recent notification marks the first meaningful step towards implementation. However, while only select provisions have not come into effect, the larger framework continues to depend on the subsequent rules the Central and State Governments will issue.

Code on Wages, 2019

The Wage Code repeals and consolidates 4 (four) central statutes: the Payment of Wages Act, 1936; the Minimum Wages Act, 1948; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. It creates a uniform structure for wage-related protections across industries.

Key reforms in the Wage Code include:

• Universal minimum wages, replacing the earlier ‘scheduled employment’ model. All employees including organised and unorganized are now entitled to minimum wages;
• National floor wage, determined by the Central Government based on living standards; State Governments cannot set minimum wages below this benchmark;
• Standardized definition of ‘wages’; and
• Streamlined compliance, replacing multiple returns and registers with a unified system, and requiring written appointment letters for all employees.

The Wage Code attempts to harmonise wage practices nationwide, particularly benefitting informal and unorganised workers.

Industrial Relations Code, 2020

The IR Code consolidates the Industrial Disputes Act, 1947; the Trade Unions Act, 1926; and the Industrial Employment (Standing Orders) Act, 1946.

Notable features of the IR Code include:

• Revised definitions of ‘worker’ and ‘industry’, expanding coverage to more occupational categories;
• Rules on trade unions, including sole negotiating union status for unions with 51% (fifty-one percent) membership;
• Mandatory notice for changes in service conditions and widened notice requirements for strikes;
• Higher threshold for standing orders, applicable to establishments with 300 (three hundred) or more workers (increased from 100 (one hundred));
• Revised closure requirements, with the 300 (three hundred) worker threshold also applying to prior government permission for lay-offs, retrenchment and closure; and
• Tribunals for dispute resolution, replacing earlier labour courts and simplifying adjudication.

The IR Code aims to balance flexibility for employers while providing procedural safeguards for workers.

Occupational Safety, Health and Working Conditions Code, 2020

The OSH Code integrates 13 (thirteen) central labour legislations related to workplace safety and working conditions, including the Factories Act, 1948; the Contract Labour Act, 1970; the Mines Act, 1952; the Dock Workers Act, 1986; and the Building and Other Construction Workers Act, 1996, among others.

Key provisions of the OSH Code include:

• Universal application of safety and health standards to all establishments meeting threshold worker counts, with specific norms for factories, mines, construction and other hazardous activities;
• Mandatory written appointment letters, electronic registers and single licensing systems to reduce fragmented compliance;
• Limits on working hours, retention of the 8 (eight) hour workday, and clearer standards on overtime and weekly rest;
• Welfare facilities, including creches in establishments with 50 (fifty) or more women, annual health check-ups, and enhanced sanitation requirements;
• Safety committees in larger units and a National Safety and Health Advisory Board to set unified safety standards; and
• Expanded protections for inter-state migrant workers, including travel allowance and benefit portability.

By consolidating numerous sector-specific laws, the OSH Code aims to create a single, predictable regulatory framework for workplace safety.

Code on Social Security, 2020

The SS Code merges 9 (nine) major laws, including the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; the Employees’ State Insurance Act, 1948; the Employees’ Compensation Act, 1923; the Maternity Benefit Act, 1961; the Payment of Gratuity Act, 1972; and the Unorganised Workers’ Social Security Act, 2008.

Key changes in the SS Code include:

• Universalisation of social security, extending schemes to unorganised workers, gig workers and platform workers through central and state social security boards;
• Revised Employee Provident Fund and Employee State Insurance applicability, expanding coverage to a wider set of establishments and enabling voluntary Employees’ State Insurance Corporation registration for smaller entities;
• Gratuity for fixed-term employees after 1 (one) year, improving protections for contract workers;
• Portability of social security benefits, including broader family definitions and recognition of commute-related accidents for compensation; and
• Digital registration, enabling a national database for unorganised, gig and platform workers.

The SS Code represents an ambitious attempt to create an integrated social protection architecture for India’s diverse workforce.

Enforcement Uncertainty and Pending Notifications

Despite the recent notification, many critical provisions across all four Codes remain unenforced. Several sections depend on the legislature such as wage fixation methodologies, inspection mechanisms, licensing systems, and the constitution of advisory bodies. In some cases, the Central Government has expressly stated that repeal of earlier statutes (e.g., Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, minimum wage provisions) will occur only once replacement schemes and authorities are fully operational.

This partial notification has created uncertainty. Employers must track which provisions are effective, which are pending, and which legacy laws continue to apply in the interim.

The Concurrent List and the Role of States

Labour falls under Entry 22 of the Concurrent List (List III) of the Seventh Schedule to the Constitution of India. This means both Parliament and State Legislatures are competent to enact laws on labour. The Codes lay down the overarching framework, but states must frame and notify their own rules for most provisions to become operational at the state level.

As of late 2025, most states had published draft rules for one or more Codes. However, not all states have finalised or notified their rules. Some states such as West Bengal have even lagged in releasing drafts. This creates certain practical challenges as in States where rules remain unnotified, older state laws and rules continue to apply, delaying uniform implementation. The result is an uneven compliance landscape where the timing of full enforcement will vary by state.

Conclusion

The four Codes mark a substantial restructuring of Indian labour law, consolidating 29 (twenty-nine) legislations into four comprehensive enactments and modernising wage regulation, industrial relations, workplace safety and social security. The recent notifications signal a movement after years of delay, but full implementation remains dependent on detailed Central Government rules and timely State Government action. For businesses, HR teams and compliance officers, the coming months will require close monitoring of both Central Government notifications and state-wise developments to ensure seamless transition to the new framework.