The Indian government has finalized the implementation of four new labour codes by officially notifying the corresponding rules, over five years after the reforms were first proposed. These codes replace and consolidate 29 existing labour laws, as reported by PTI.
Overview of the New Labour Codes
The four codes—the Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020—came into force on November 21, 2025. However, full operationalization was pending until the detailed rules were published.
Notification of Rules
An official informed PTI that the rules under all four labour codes have now been published in the official gazette, completing the process for full implementation. While the codes became law last year, certain operational explanations and procedures could not be enforced without the notified rules.
The draft rules were first published on December 30, 2025, to gather stakeholder feedback before undergoing legal vetting and final notification.
Objectives of the Labour Reforms
The labour law reforms aim to simplify India's labour framework, improve ease of doing business, and expand worker protection through a modernized legal structure. The codification seeks to ensure minimum wages, universal social security coverage, workplace safety, and streamlined compliance mechanisms across sectors.
Centre and State Responsibilities
Since labour falls under the concurrent list, both the central government and states are required to notify their respective rules for full enforcement across the country. The implementation is expected to broaden worker protection, improve business efficiency, and promote a more formal and structured labour ecosystem.
Key Provisions of the New Framework
- Mandatory appointment letters for workers
- Free annual health check-ups for employees aged 40 years and above
- Equal work, pay, and opportunity for women across different shifts
- National Reskilling Fund to support workers who lose employment and require retraining
- Maximum working hours capped at 48 hours per week
- At least one weekly rest day and overtime payments for work beyond prescribed hours
Working Hours and Overtime
The rules state: “The number of hours of work which shall constitute a normal working day for an employee whose wage period is other than on a daily basis shall be so fixed that the total number of weekly working hours shall not exceed forty-eight hours.” The framework also provides for overtime compensation.
These reforms are expected to significantly enhance the labour environment in India, balancing worker protection with business flexibility.
