India has taken a historic step toward modernizing its labour landscape with the introduction of four comprehensive new labour codes. This sweeping reform aims to replace a complex web of outdated regulations, some of which originated during the British colonial era, with a streamlined system designed to extend crucial protections to millions of workers in the formal and informal sectors.
Key Highlights of the New Labour Codes
The government's ambitious overhaul consolidates numerous old laws into four coherent codes. The primary objective is to balance worker welfare with the ease of doing business, bringing India's labour laws into the 21st century.
Enhanced Social Security and Worker Benefits
One of the most significant changes is the extension of social security benefits to gig workers. For the first time, millions of individuals working in the platform economy will have access to a social safety net.
Furthermore, fixed-term employees will now be eligible for gratuity payments, a benefit previously often reserved for permanent staff. This move ensures that all workers receive fair recognition for their service, regardless of their employment contract type.
Another progressive reform allows women to work in night shifts
Standardization of Wages and Working Conditions
The new codes establish a universal minimum wage for all workers, a landmark step toward ensuring a basic standard of living. This will be applicable across the country, bringing uniformity and clarity.
Standardization also applies to working hours, with clear definitions that are expected to apply consistently across industries, reducing ambiguity and potential for exploitation.
The reforms also simplify the process for hiring and firing employees for companies, a measure the government argues is necessary to attract investment and make Indian industry more competitive globally.
Criticism and the Road Ahead
Despite the government's pro-worker narrative, the new labour codes have faced strong criticism. Several trade unions have labeled the reforms as 'anti-worker and pro-employer', expressing concerns that the easier hire-and-fire provisions could lead to job insecurity.
They argue that while the codes offer new protections on one hand, they potentially weaken existing job security measures on the other. The implementation of these codes, which was announced on 22 November 2025, marks the beginning of a significant transformation in India's labour market, the full impact of which will unfold in the coming years.
