New Labour Code Brings Sweeping Reforms in Workplace Laws

Nov 22, 2025 - In a major step toward changing working conditions in the country, the Central Government on Friday announced the implementation of the new Labour Code introducing a wide set of labour reforms. The government has consolidated 29 existing labour laws into four labour codes - Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020). Mansukh Mandaviya, the Minister of Labour and Employment, announced the implementation of this through an X post.

The government has said that these reforms will benefit crores of workers in the private and unorganised sectors. It includes provisions such as mandatory appointment letters, guaranteed minimum and timely wages, equality for women in workplaces and payment of gratuity after just one year of service. Keeping social security in mind, the code also introduces ESIC benefits and mandatory health check-ups after 40 years of service.

Prime Minister Narendra Modi, calling it a historic day under the slogan Shramev Jayate, said the new labour code includes special provisions for women, as well as for workers in hazardous and high-risk industries, gig workers and those working in the IT sector.

The government claims that the labour code aims to bring Indian labour laws closer to global standards. It is estimated that nearly 40 crore people will benefit from the new labour code. The objective is to promote ease of doing business and job creation, ensure safety, health, social and wage security for every worker, simplify compliance, streamline enforcement and modernise outdated laws.

Key Benefits Under New Labour Code:

• Guarantee of timely and minimum wages for all workers, including fixed-term employees (FTEs).
• Mandatory appointment letter, mentioning job role, salary and benefits.
• Gratuity eligibility after one year instead of five years for regular workers and FTEs.
• Equal pay for women.
• Guarantee of social security.
• Annual medical check-up for employees above 40 years of age.
• Double wages for overtime, along with leave and workplace safety.
• Timely resolution of complaints related to harassment, discrimination and wage issues.
• 100% health and safety assurance for workers in hazardous sectors.
• Mandatory safety committee in establishments with more than 500 employees to ensure accountability.

Women-Specific Benefits

• Prohibition of gender discrimination; equal pay for equal work.
• Women allowed to work in night shifts and all types of work, subject to consent and required safety measures.
• Mandatory representation of women in grievance redressal committees.
• Definition of a woman employee’s family now includes parents-in-law.
• 26 weeks of maternity leave, along with crèche facility and work-from-home option.
• Rs 3,500 medical bonus.

With Media Inputs

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