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Labour Codes Fully Operationalised After Five-Year Wait

The central government has finally operationalised the four labour codes by publishing rules, ensuring a comprehensive framework for minimum wage and universal social security for all workers. The four codes, namely 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, came into effect on November 21, 2025, after a wait of over five years.

The labour codes were introduced to modernise and consolidate 29 labour laws into a simplified and contemporary framework. An official told PTI that the rules under the four codes are now notified in the official gazette of the government, marking the completion of the full implementation process. The draft rules were published on December 30, 2025, to seek feedback from stakeholders and were notified after legal vetting.

The codification of 29 existing labour laws into the four labour codes was undertaken to address long-standing challenges and make the system more efficient and contemporary. The codification aims to enhance ease of doing business, promote employment generation, ensure safety, health, and social & wage security for every worker. Since labour is a concurrent subject, the appropriate governments, the Centre and states, are required to notify the rules under the four codes to enforce them fully across the country.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Provisions of the Labour Codes

CodeKey Provisions
Code on Wages, 2019Mandatory appointment letter, free health check-ups for workers aged 40 years and above, equal work, pay and opportunity for women working in different shifts
Industrial Relations Code, 2020Establishment of a National Reskilling Fund, utilised for reskilling workers who lose their jobs
Code on Social Security, 2020Capped weekly working hours at 48 hours, at least one weekend off or rest day to workers, payment of overtime for working beyond working hours

The enforcement of the codes will mark the next transformative step, broadening worker protection, easing business operations and promoting a pro-worker labour ecosystem. The provisions of the labour codes also include a mandatory appointment letter, free health check-ups for workers aged 40 years and above, and equal work, pay and opportunity for women working in different shifts. The new legal framework also mandates the establishment of a National Reskilling Fund, which will be utilised for reskilling workers who lose their jobs.

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