CA Pratibha Goyal | Nov 21, 2025 |
Biggest Labour Reform in Indian History: 4 Labour Codes Effective from today
In a historic decision, Modi Government has announced implementation of four Labour Codes, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 rationalising 29 existing labour laws.
The same is effective from 21st November 2025.
A comparison of the labour ecosystem, before and after the implementation of the Labour Codes, is as follows:
| Difference | Pre Labour Reforms | Post Labour Reforms |
| Formalisation of Employment | No mandatory appointment letters | Mandatory appointment letters to all workers. |
| Social Security Coverage | Limited Social Security Coverage | Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage. |
| Minimum Wages | Minimum wages applied only to scheduled industries/employments; large sections of workers remained uncovered | Under the Code on Wages, 2019, all workers to receive a statutory right minimum wage payment. |
| Preventive Healthcare | No legal requirement for employers to provide free annual health check-ups to workers | Employers must provide all workers above the age of 40 years with a free annual health check-up. |
| Timely Wages | No mandatory compliance for employers payment of wages | Mandatory for employers to provide timely wages |
| Women workforce participation | Women’s employment in night shifts and certain occupations was restricted | Women are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures. |
| ESIC coverage | ESIC coverage was limited to notified areas and specific industries; establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform mandatory ESIC coverage across India | ESIC coverage and benefits are extended Pan-India – voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes. |
| Compliance Burden | Multiple registrations, licenses and returns across various labour laws. | Single registration, PAN-India single license and single return. |
Read More: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2192463
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