India's New Labour CodesA new era of employment law

The new labour codes are four consolidated central laws that replace 29 earlier labour enactments in India: (1) the Code on Wages, 2019; (2) the Industrial Relations Code, 2020; (3) the Occupational Safety, Health and Working Conditions Code, 2020; and (4) the Code on Social Security, 2020. Together they form a single, modernised framework covering wages, industrial relations, workplace safety and social security across the organised and unorganised sectors.

The four new labour codes of India are the Code on Wages, the Industrial Relations Code, the Occupational Safety, Health and Working Conditions Code, and the Code on Social Security. All four codes came into effect on 21 November 2025. The central rules under the Wages, Industrial Relations and Social Security Codes were notified on 8 May 2026, and the rules under the OSH Code were notified on 9 May 2026. State rules continue to be notified separately as labour is a concurrent subject.

India's labour laws had grown complex over decades, with 29 central laws and over 100 state laws creating overlapping and sometimes contradictory requirements. The Second National Commission on Labour (2002) recommended consolidation to simplify compliance, reduce litigation, and create a more business-friendly environment while protecting worker interests. The four new codes aim to modernize the legal framework, extend protections to the unorganized sector and gig economy, and promote ease of doing business.

The four labour codes consolidate 29 central labour enactments: the Code on Wages consolidates 4 laws, the Industrial Relations Code consolidates 3 laws, the Occupational Safety, Health and Working Conditions Code consolidates 13 laws, and the Social Security Code consolidates 9 laws.

All four labour codes came into effect on 21st November 2025. While the codes were passed by Parliament between 2019-2020, their implementation was delayed pending finalization of central and state rules. The codes apply uniformly across India, though states may have their own rules for certain provisions as labour is a concurrent subject.

Employers benefit from simplified compliance through consolidation of multiple laws, single registration for establishments, common licensing for factories and contract labour, web-based inspections, and fixed-term employment provisions. The threshold for standing orders has been raised to 300 workers, and the concept of Inspector-cum-Facilitator promotes advisory compliance assistance.

Establishments must comply from the date the codes came into force on (21 November 2025). However, transitional provisions protect existing rights and benefits. Existing registrations continue for a specified period. Employers should prioritize immediate compliance items like appointment letters and wage structure review.