Draft Labour Rules: A Step Forward Towards Implementation

On December 31, 2025, the Ministry of Labour and Employment (“Ministry“) released the draft rules for the implementation of the four labour codes, marking a significant advancement in India’s labour law reform process. The Ministry has placed in public domain, the Draft Code on Wages (Central) Rules, 2025 (“Wage Rules“); the Draft Industrial Relations Code (Central) Rules, 2025 (“IR Rules“); Draft Social Security Code (Central) Rules, 2025 (“SS Rules“); and the Draft Occupational Safety, Health and Working Conditions Code (Central) Rules, 2025 (“OSH Rules“). While the four labour codes lay down the substantive legal framework, the draft rules provide procedural clarity and offer detailed guidance on how the key provisions are intended to be administered in practice. Currently, the Ministry has invited comments from all the stakeholders on the draft rules prior to their finalization.

Draft Code on Wages (Central) Rules, 2025

The Wage Rules are issued under Section 67 of the Code on Wages, 2019. The Wage Rules aim to replace 18 (eighteen) central labour law rules, governing matters relating to payment of wages, bonuses and minimum wage. These include, inter alia, the Payment of Bonus Rules, 1975; the Minimum Wage (Central) Rules, 1950; and the Equal Remuneration Rules, 1976.

Key provisions of the Code on Wage Rules include:

• Chapter II prescribes the manner of calculating minimum wages. Minimum wages are to be determined on a daily basis and thereafter, hourly and monthly wages would be calculated using a standard formula. The computation is based on the needs of a standard working-class family, including food intake, clothing, housing rent, fuel, electricity and other basic requirements.
• Chapter IV sets out detailed provisions relating to wage payment, deductions, recovery of advances, fines, and loans, along with procedures for approvals and limits on deductions, thereby ensuring compliance and transparency in wage-related matters.
• Employers are required to exhibit a notice, containing details of acts or omissions which may lead to imposition of fine by the employer. Such a notice must be displayed prominently at the establishment, either in physical or electronic form, in Hindi, English, and the local language.
• Chapter VIII specifies the procedure for filing applications and appeals, maintaining mandatory registers relating to employee, wages, attendance, issuing wage slips, and conducting inquiries for offences. Every employer is required to issue wage slips, electronically or in physical form, to the employees, on or before payment of wages.

The Wage Rules introduce additional procedural requirements relating to wage deductions, fines, wage slips, nomination and record keeping with a clear emphasis on adherence to specified formats and statutory timelines.

Draft Industrial Relations Code (Central) Rules, 2025

The IR Rules are issued under Section 99 of the Industrial Relation Code, 2020 and seek to replace 2 (two) central labour law rules i.e. the Industrial Disputes (Central) Rules, 1957; and the Industrial Employment (Standing Order) Central Rules, 1946.

Notable features of the IR Rules include:

• Industrial establishment employing 20 (twenty) or more workers are required to constitute a grievance redressal committee with equal employer-worker representation to resolve disputes, with escalation to conciliation, if unresolved.
• Rule 9 prescribes the procedure for the recognition of a negotiating union or negotiating council and sets out a list of matters including leave with wages, safety, health and working conditions of workers etc. in respect of which such negotiating union or negotiating council shall negotiate with the employer. Such recognition shall be valid for a period of 3 (three) years.
• Employers intending to change service conditions are required to serve prior notice, electronically or by post, and display it prominently under Rule 19.
• Chapter VI enables employers and workers to refer industrial disputes to arbitration through an agreement in Form V, with consent of arbitrators, and requires the Government to publish a notification in this regard.

The IR Rules strengthen up institutional mechanism for collective bargaining and dispute resolution, while promoting transparency and procedural certainty.

Draft Social Security Code (Central) Rules, 2025

The SS Rules are issued under the provisions of Section 154, 155, 158 and 159 of Code on Social Security, 2020. The SS Rules aims to replace 12 (twelve) central labour law rules, including the Payment of Gratuity (Central) Rules, 1972; Maternity Benefit (Mines and Circus) Rules, 1963; and Employees’ State Insurance (Central) Rules, 1950, among others.

Key changes in the SS Rules include:

• Rule 49 clarifies that any gig worker or platform worker in order to be eligible for any scheme framed under Code on Social Security, 2020 should be engaged with a single aggregator for a period of not less than 90 (ninety) days or in case of multiple aggregator then not less than 120 (one hundred and twenty) days in the last financial year.
• The gig worker who has completed age of 16 (sixteen) years shall now be required to be registered with Aadhaar or on self-declaration basis on a portal designated by the Central Government.
• National Social Security Board will be constituted under the SS Rules to oversee welfare for unorganized, gig, and platform workers, with members nominated by the government and experts.
• Establishments are now required to register on Shram Suvidha Portal, update details, and comply with the SS Rules.

The SS Rules aim to streamline social security compliance, expand coverage to gig, platform and unorganized workers, and strengthen administrative oversight for effective implementation.

Draft Occupational Safety, Health and Working Conditions Code (Central) Rules, 2025

The OSH Rules are issued under the provisions of Section 133 and 134 of the Occupational Safety, Health and Working Conditions Code, 2020. The OSH Rules aims to replace 13 (thirteen) central labour law rules, including the Mines Rules, 1955; the Contract Labour (Regulation and Abolition) Central Rules, 1971; and the Dock Workers (Safety, Health and Welfare) Rules, 1990, among others.

Key Provisions of OSH Rules include:

• Employers are required to conduct annual health checkups for employees aged above 40 (forty) years within 120 (one hundred and twenty) days of the calendar year. Further, the employers are required to issue appointment letters with complete details including name, date of birth and wages etc. to employees before employment or within 3 (three) months of the operation of OSH Rules.
• Rule 34 states that working hours for workers cannot be more than 48 (forty-eight) hours per week, with daily work periods and intervals as notified by the central government.
• Chapter IX requires employers to pay inter-state migrant workers a lump sum for to-and-fro travel once a year if they have worked at least 180 (one hundred and eight) days and provide a toll-free helpline for their safety.
• Rule 10 states that employees are required to report unsafe or unhealthy conditions to the safety officer, manager, or health representative via electronic, written, or telephonic means.

The OSH Rules are an attempt to strengthen workplace safety and health standards through employee welfare provisions, and clear reporting mechanism.

The notification of the draft rules by the Ministry under the four labour codes marks an important step in India’s labour law reform, providing procedural clarity on wages, social security, industrial relations and occupational safety.

Considering that labour is a subject under the Concurrent List of the Seventh Schedule to the Constitution of India, with both the Central and State Governments being competent to enact laws on labour, the effective operation of the labour codes is also dependent upon the formulation of the state-specific rules. As several states including West Bengal, have not yet released their draft rules, compliance and enforcement are expected to vary from state to state, resulting in a phased and uneven implementation landscape across the country.