What Changed on 21 November 2025?
On 21 November 2025, India's Ministry of Labour and Employment notified four labour codes, repealing and replacing 29 existing labour laws in what is regarded as one of India's most ambitious reform exercises.
Update: All Four Central Rules Notified (8-9 May 2026)
The Ministry of Labour and Employment has now notified the central rules under all four labour codes, the Industrial Relations (Central) Rules, 2026, Code on Wages (Central) Rules, 2026, Occupational Safety, Health and Working Conditions (Central) Rules, 2026 and Social Security (Central) Rules, 2026, and they have come into force. Procedural compliances (registrations, returns, scheme-based filings, registers and forms) under all four codes are now operational at the central level. State-specific rules continue to be notified separately and should be checked for state-level deviations.
Reform Timeline
Industries Most Impacted
Manufacturing
New wage structures, OSH compliance, contractor regulations
IT & Services
Fixed-term employment, social security for gig workers
Construction
Enhanced safety norms, contract labour welfare obligations
Banking & Insurance
Central government supervision, uniform compliance
Telecom
Centralized oversight, streamlined multi-state operations
Gig Economy
First-time social security coverage for gig and platform workers
Key Employer Action Items
1Single Registration System
New establishments formed after commencement of the Code must obtain unified registration within 60 days from the Code's applicability (once rules are notified).
Action Required:
- • Apply for unified registration within 60 days from date of applicability of code (once rules are notified)
- • Upload all required establishment details electronically
- • Maintain updated records on common portal
Note: Central Rules under all four codes have been notified (8-9 May 2026). The registration portal and procedures are now operational.
2Mandatory Appointment Letters
All employees must receive written appointment letters specifying terms of employment, wages, and working conditions.
Action Required:
- • Issue letters to all existing employees
- • Include all statutory particulars
- • Maintain signed acknowledgments
3Wage Structure Revision
Basic wages must constitute at least 50% of total compensation. Allowances exceeding 50% will be treated as wages for statutory calculations.
Action Required:
- • Review all existing compensation structures
- • Restructure to ensure 50:50 compliance
- • Update payroll systems and calculations
4Fixed-Term Employment Framework
New provisions allow hiring workers on fixed-term contracts with equal benefits as permanent employees.
Action Required:
- • Draft compliant fixed-term employment contracts
- • Ensure parity in benefits and wages
- • Calculate pro-rata gratuity (on completion of min one year)
5Gig Worker Social Security
Platform aggregators must contribute 1-2% of annual turnover for social security schemes benefiting gig and platform workers.
Action Required:
- • Calculate contribution based on turnover
- • Register gig workers with authorities
- • Await notification of specific schemes
6Enhanced OSH Compliance
Stricter occupational safety and health standards with higher penalties for non-compliance and mandatory annual health examinations.
Action Required:
- • Schedule annual health check-ups
- • Update safety protocols and training
- • Ensure compliance with welfare facility requirements
Required Transition Steps
Immediate (Within 30 Days)
- Conduct comprehensive audit of current compliance status
- Identify gaps between existing practices and new code requirements
- Form internal task force for implementation
- Engage legal counsel for interpretation of applicable provisions
Short Term (30-90 Days)
- Apply for single registration under unified portal (subject to rules notification)
- Issue appointment letters to all employees
- Revise wage structures to meet 50% basic wage requirement
- Update HR policies and employee handbook
- Train HR and management teams on new codes
Medium Term (90-180 Days)
- Implement new payroll calculations and deductions
- Update contracts with contractors and vendors
- Establish new record-keeping systems
- Conduct workplace safety audits and remediation
- Review and restructure contract labour arrangements
Ongoing Compliance
- Regular monitoring of compliance through internal audits
- Periodic training and awareness programs
- Timely filing of returns and maintenance of registers
- Stay updated on state-specific rules and amendments
- Engage with Inspector-cum-Facilitators for guidance
What Employers Must Do Immediately
Non-compliance penalties are significant: The new codes introduce higher fines and stricter enforcement mechanisms. Early action is essential.
State rules vary: While the central codes are uniform, state-specific rules may introduce variations. Consult state-wise notifications for your locations.
Seek expert guidance: The transition from 29 laws to 4 codes involves complex interpretations. Professional advice can prevent costly errors.
Need assistance with compliance?
Contact our employment law team at employmentlaw@lkslaw.com
Frequently Asked Questions
Common questions about the 21 November 2025 transition to India's new labour codes.
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.
Workers benefit from universal minimum wage coverage (including unorganized sector), floor wage ensuring a basic standard across states, mandatory appointment letters, social security coverage for gig and platform workers for the first time, enhanced maternity benefits, pro-rata gratuity for fixed-term employees, and portability of benefits for inter-state migrant workers.
Employers should: review and update employment contracts including appointment letters, revise HR policies to align with new definitions and provisions, audit current wage structures against new minimum wage and overtime requirements, update payroll systems for new calculation methods, train HR teams on the new framework, and review standing orders if applicable.
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.
- SSCentral10/08/2026
Draft Employees' State Insurance (General) Regulations, 2026
Draft Employees' State Insurance (General) Regulations, 2026 (103 pages) issued for comment together with a clause by clause comparison against the existing ESI Regulations (an additional 118 pages).
- OSHState: Andhra Pradesh06/08/2026
Andhra Pradesh notifies Occupational Safety, Health and Working Conditions Rules, 2026 (Final Notification)
Final notification of the Occupational Safety, Health and Working Conditions (Andhra Pradesh) Rules, 2026 under G.O.Rt.No.146, superseding eight prior state labour enactments; published in Andhra Pradesh Gazette No.432 dated 7 August 2026.
- SSCentral04/08/2026
Corrigenda to the Employees' Pension Scheme, 2026 (G.S.R. 704(E))
Ministry of Labour and Employment corrigenda correcting ten drafting errors in the Employees' Pension Scheme, 2026 (originally notified vide G.S.R. 527(E) dated 29 June 2026, Issue No. 475); published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), No. 640 dated 4 August 2026.
- OSHState: Bihar01/07/2026
Bihar notifies Occupational Safety, Health and Working Conditions Rules, 2026
Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026, made under sections 133 and 135 of the OSH Code, 2020, in supersession of six prior Bihar labour enactments including the Factory Rules 1950 and Contract Labour Rules 1972; published in the Bihar Gazette (Extraordinary) dated 1 July 2026.
- SSCentral01/07/2026
Central Government notifies 8.33% Employees' Pension Scheme contribution rate
S.O. 3580(E): the Central Government notifies eight and one-third per cent of wages as the Employees' Pension Scheme, 2026 contribution rate payable monthly by the employer into the Pension Fund, with effect from 29 June 2026, the date the Scheme commenced, without prejudice to S.O. 2061(E) dated 3 May 2023.