# LKS Employment Law Microsite - Comprehensive Guide > Expert guide to India's 4 new Labour Codes effective November 21, 2025 > By Lakshmikumaran & Sridharan Attorneys (LKS) ## About This Resource This comprehensive guide from Lakshmikumaran & Sridharan Attorneys provides authoritative information on India's landmark labour law reforms. The four new Labour Codes consolidate 29 previous central labour laws into a modern, unified framework. --- ## THE FOUR LABOUR CODES ### CODE ON WAGES, 2019 (Act No. 29 of 2019) **Laws Consolidated:** 1. Payment of Wages Act, 1936 2. Minimum Wages Act, 1948 3. Payment of Bonus Act, 1965 4. Equal Remuneration Act, 1976 **Key Provisions:** - Universal applicability: No wage ceiling for coverage - Wages must comprise at least 50% of total remuneration - Components NOT included in 50% calculation: gratuity, retrenchment compensation, HRA, conveyance, bonus, PF employer contribution - Minimum wages reviewed every 5 years - Bonus: 8.33% minimum, 20% maximum for employees earning up to ₹21,000/month - Equal remuneration: Experience can be a ground for wage differentiation - Payment timeline: Monthly wages by 7th (1000+ workers), 10th (<1000 workers) **Penalties:** - Fine up to ₹50,000 for first offence - Up to ₹1,00,000 and/or 3 months imprisonment for repeat offences --- ### INDUSTRIAL RELATIONS CODE, 2020 (Act No. 35 of 2020) **Laws Consolidated:** 1. Trade Unions Act, 1926 2. Industrial Employment (Standing Orders) Act, 1946 3. Industrial Disputes Act, 1947 **Key Provisions:** - Standing orders mandatory for establishments with 300+ workers (previously 100+) - Fixed-term employment formally recognized - Fixed-term employees entitled to same benefits as permanent workers - Gratuity for fixed-term: Minimum 1 year service required - Retrenchment: 90 days notice for establishments with 300+ workers - Strike notice: 14 days in public utility services, 60 days elsewhere - Negotiating union/council threshold: 51% membership for sole recognition **Fixed-Term Employment Key Points:** - Must be in writing - No restrictions on areas/projects - Equal treatment with permanent workers - Gratuity after 1 year service (pro-rata if less) - Expiry of contract ≠ retrenchment - Early termination by employer may = retrenchment if 240+ days worked --- ### OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020 (Act No. 37 of 2020) **Laws Consolidated (13 acts):** 1. Factories Act, 1948 2. Mines Act, 1952 3. Dock Workers (Safety, Health and Welfare) Act, 1986 4. Building and Other Construction Workers Act, 1996 5. Plantations Labour Act, 1951 6. Contract Labour (Regulation and Abolition) Act, 1970 7. Inter-State Migrant Workmen Act, 1979 8. Working Journalists and Other Newspaper Employees Act, 1955 9. Working Journalists (Fixation of Rates of Wages) Act, 1958 10. Motor Transport Workers Act, 1961 11. Sales Promotion Employees (Conditions of Service) Act, 1976 12. Beedi and Cigar Workers (Conditions of Employment) Act, 1966 13. Cine-Workers and Cinema Theatre Workers Act, 1981 **Applicability Thresholds:** - General establishments: 10+ workers - Factories: 10+ workers (with power) or 20+ workers (without power) - Contract labour licensing: 50+ workers - Mines, ports: No threshold - Hazardous activities: No threshold **Key Provisions:** - Maximum 8 hours/day working time - Annual health check-ups mandatory - Contract labour: License required for 50+ workers - Inter-state migrants: Portability of benefits, journey allowance - Women can work in all establishments with appropriate safeguards - Single registration for multiple labour laws --- ### SOCIAL SECURITY CODE, 2020 (Act No. 36 of 2020) **Laws Consolidated (9 acts):** 1. Employees' Provident Funds and Miscellaneous Provisions Act, 1952 2. Employees' State Insurance Act, 1948 3. Employees' Compensation Act, 1923 4. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 5. Maternity Benefit Act, 1961 6. Payment of Gratuity Act, 1972 7. Cine Workers Welfare Fund Act, 1981 8. Building and Other Construction Workers' Welfare Cess Act, 1996 9. Unorganised Workers' Social Security Act, 2008 **Key Provisions:** - EPF: 20+ employees (12% contribution rate) - ESI: 10+ employees, wage limit ₹21,000/month - Gratuity: 5 years service (1 year for fixed-term employees) - Maternity: 26 weeks paid leave - Gig/Platform workers: Social security fund established (1-2% of aggregator turnover) - Aadhaar mandatory for social security benefits **Gratuity Calculation:** - 15 days wages for each completed year of service - Fixed-term: Pro-rata for service less than 1 year --- ## KEY THRESHOLDS QUICK REFERENCE | Threshold | Applicability | |-----------|---------------| | 10 workers | General establishment registration, ESI, POSH IC mandatory | | 20 workers | EPF applicability | | 50 workers | Contract labour licensing | | 300 workers | Standing orders mandatory, Retrenchment govt approval required | --- ## COMPLIANCE CALENDAR HIGHLIGHTS ### Monthly - EPF contribution: 15th of following month - ESI contribution: 15th of following month - Wage payment: 7th/10th depending on workforce size ### Annual - EPF Annual Return (Form 5A): April 30 - Bonus payment: Within 8 months of accounting year - Annual health check-ups (OSH Code) ### Event-Based - Gratuity: Within 30 days of becoming payable - F&F Settlement: Within 2 working days - Retrenchment notice: 90 days (300+ workers) - Strike notice: 14/60 days depending on establishment type --- ## FREQUENTLY ASKED QUESTIONS ### Fixed-Term Employment Q: What is fixed-term employment? A: Employment on the basis of a written contract for a fixed period. The tenure is predetermined and employment automatically ends upon tenure completion. Q: What benefits does a fixed-term employee get? A: All statutory benefits of permanent workers, accruing proportionately. Gratuity requires minimum 1 year service. Q: Does contract expiry = retrenchment? A: No. Expiry upon tenure completion is not retrenchment. However, early termination by employer for non-disciplinary reasons may be retrenchment if 240+ days worked. ### Contract Labour Q: What are principal employer duties? A: Ensure contractor compliance, payment of wages if contractor fails, provide welfare facilities, maintain records. Q: When is contractor license required? A: When employing 50 or more contract labour. ### Wage Structure Q: What is the 50% rule for wages? A: Basic wages must be at least 50% of total remuneration. Components excluded from this calculation include HRA, gratuity, retrenchment compensation, conveyance allowance, bonus, and employer PF contribution. Q: What are the wage payment timelines? A: By 7th of following month for establishments with 1000+ workers; by 10th for smaller establishments. ### Social Security Q: What is the EPF contribution rate? A: 12% each from employer and employee on basic wages + DA, subject to wage ceiling of ₹15,000/month for benefits calculation. Q: What is the ESI wage limit? A: Employees earning up to ₹21,000/month are covered. Contribution: 0.75% employee, 3.25% employer. Q: How is gratuity calculated? A: 15 days wages for every completed year of service. For fixed-term employees with 1+ year service, gratuity is mandatory even if less than 5 years. --- ## STATE RULES NOTIFICATION STATUS ### Fully Notified (All 4 Codes) - Karnataka (January 2026) - Maharashtra - Kerala - Bihar (December 2025) - Madhya Pradesh (January 2026) - Rajasthan (January 2026) ### Partially Notified - Delhi: IR, OSH, SS notified; Wages pending - Punjab: IR, SS, Wages notified; OSH pending - Puducherry: Overtime and Women Night Shift notifications - Meghalaya: All 4 codes (January 2025) ### Central Government - Final rules yet to be notified - Draft rules published 2020 --- ## STATE-WISE LABOUR CODE RULES (Comprehensive) ### Bihar (December 2025) - FULLY NOTIFIED **Status:** All 4 Labour Codes notified with final rules - Wages Code Rules: ✓ Notified (December 2025) - Industrial Relations Code Rules: ✓ Notified (December 2025) - OSH Code Rules: ✓ Notified (December 2025) - Social Security Code Rules: ✓ Notified (December 2025) **PDF Documents Available:** Yes, all 4 codes **Deep Link:** /rules#bihar **Key Provisions:** Standard minimum wages, EPF/ESI compliance, workplace safety ### Karnataka (January 2026) - DRAFT STAGE **Status:** All 4 Labour Codes have draft rules published - Wages Code Rules: Draft published (January 2026) - Industrial Relations Code Rules: Draft published (January 2026) - OSH Code Rules: Draft published (January 2026) - Social Security Code Rules: Draft published (January 2026) **PDF Documents Available:** Yes, all 4 draft codes **Deep Link:** /rules#karnataka **Key Provisions:** State-specific wage adjustments, industry thresholds ### Madhya Pradesh (January 2026) - DRAFT STAGE **Status:** All 4 Labour Codes have draft rules published - Wages Code Rules: Draft published (January 2026) - Industrial Relations Code Rules: Draft published (January 2026) - OSH Code Rules: Draft published (January 2026) - Social Security Code Rules: Draft published (January 2026) **PDF Documents Available:** Yes, all 4 draft codes **Deep Link:** /rules#madhya-pradesh ### Rajasthan (Mixed Status) **Status:** OSH Code notified early, others in draft - Wages Code Rules: Draft published (January 2026) - Industrial Relations Code Rules: Draft published (January 2026) - OSH Code Rules: ✓ Notified (May 2023) - Early adopter - Social Security Code Rules: Draft published (January 2026) **PDF Documents Available:** Yes, all 4 codes **Deep Link:** /rules#rajasthan ### Delhi (December 2025) - PARTIALLY NOTIFIED **Status:** 3 of 4 codes notified - Wages Code Rules: Draft stage only - Industrial Relations Code Rules: ✓ Notified (December 2025) - OSH Code Rules: ✓ Notified (December 2025) - Social Security Code Rules: ✓ Notified (July 2025) **PDF Documents Available:** Yes (IR, OSH, SS notified versions) **Deep Link:** /rules#delhi ### Punjab (December 2025) - PARTIALLY NOTIFIED **Status:** 3 of 4 codes notified (OSH pending) - Wages Code Rules: ✓ Notified (December 2025) - Industrial Relations Code Rules: ✓ Notified (December 2025) - OSH Code Rules: Draft stage only - Social Security Code Rules: ✓ Notified (December 2025) **PDF Documents Available:** Yes (Wages, IR, SS notified versions) **Deep Link:** /rules#punjab ### Meghalaya (January 2025) - FULLY NOTIFIED **Status:** All 4 Labour Codes notified - Wages Code Rules: ✓ Notified (January 2025) - Industrial Relations Code Rules: ✓ Notified (January 2025) - OSH Code Rules: ✓ Notified (January 2025) - Social Security Code Rules: ✓ Notified (January 2025) **PDF Documents Available:** Yes, all 4 codes **Deep Link:** /rules#meghalaya ### Puducherry (December 2025) - PARTIALLY NOTIFIED **Status:** Specific OSH provisions notified - OSH Code Rules: ✓ Notified (Overtime hours & Women Night Shift only) - Other codes: Draft stage **PDF Documents Available:** Yes (Overtime, Women Night Shift) **Deep Link:** /rules#puducherry **Key Provisions:** Extended overtime provisions, women night shift permissions ### States with No Notifications Yet - West Bengal: No drafts published - Tamil Nadu: Social Security draft pending - Other states: Draft rules published, notification pending --- ## FAQ CATEGORIES COVERED 1. General & Applicability (15 questions) 2. Wages & Compensation (18 questions) 3. Working Hours & Leave (12 questions) 4. Fixed-Term Employment (10 questions) 5. Contract Labour (14 questions) 6. Social Security & Benefits (16 questions) 7. Maternity & Gratuity (11 questions) 8. Standing Orders & Disputes (9 questions) 9. Retrenchment & Closure (8 questions) 10. Compliance & Registration (12 questions) 11. Gig & Platform Workers (5 questions) 12. Interstate Migrants (6 questions) 13. POSH Compliance (8 questions) 14. Record Keeping (6 questions) --- ## EXPERT TEAM AREAS - Employment Contract Drafting & Review - Workforce Restructuring Advisory - Labour Code Compliance Audits - Policy Documentation & Training - POSH Compliance & IC Training - Dispute Resolution & Litigation - Fixed-Term & Contract Labour Advisory - Social Security Optimization - Cross-Border Employment Issues - Mergers & Acquisitions HR Due Diligence --- ## CONTACT & RESOURCES **Email:** employmentlaw@lkslaw.com **Website:** https://employmentlaw.lkslaw.com **Parent Site:** https://www.lkslaw.com **14 Office Locations:** Ahmedabad, Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Jaipur, Kochi, Kolkata, Mumbai, Nagpur, New Delhi, Prayagraj, Pune --- ## IMPORTANT NOTICES 1. **Central Rules Status:** The Central Rules under the four Labour Codes are yet to be notified. Until notified, procedural aspects like registration and filing cannot be implemented. 2. **State Rules:** Various states have notified their rules. Check state-specific requirements. 3. **Disclaimer:** This information is for general guidance only. For specific legal advice, consult with the LKS employment law team. --- ## DOCUMENT METADATA - Last Updated: February 2026 - Effective Date of Codes: November 21, 2025 - Source: Lakshmikumaran & Sridharan Attorneys - Coverage: Pan-India (Central legislation)