India enforces new labour codes with wider rights, stronger safety rules
New Delhi – India began a major shift in labour regulation on Friday as the Union government activated four new labour codes. These laws aim to protect workers, expand social security, and give companies clearer rules. The reform replaces 29 older laws that had created confusion for decades.
The government moved after Parliament passed the wage, industrial relations, safety and working-condition, and social security codes during 2019–20. Union labour minister Mansukh Mandaviya briefed reporters and said the codes now create a unified labour framework across the country.
To begin with, the codes introduce a national minimum wage. Earlier, only select scheduled industries had this protection. Now, all workers fall under the same baseline wage rule, which aims to reduce income inequality and strengthen wage accountability.
Next, the codes overhaul gratuity rules. Fixed-term employees will now receive gratuity after one year of continuous service. Earlier, they needed five years. This change brings short-term and contract workers closer to permanent staff in terms of benefits. Fixed-term staff will also get leave, regulated working hours and medical benefits on par with permanent workers.
The reform moves further by defining gig and platform work for the first time. Section 2(35) of the Social Security Code describes gig workers as individuals who earn outside a traditional employer–employee relationship. With this, India recognises the fast-growing digital workforce and prepares the ground for future social security expansion.
The codes also push companies to invest in preventive healthcare. Employers must now offer free annual medical checkups to workers above 40. In addition, no company can hire a worker without issuing a written appointment letter, which aims to reduce disputes and ensure clarity.
Salary timelines also tighten. All companies must pay wages on time, while IT firms must credit salaries by the 7th of every month. This step targets delayed payments that often hurt household budgets.
Meanwhile, the codes open new doors for women. They allow women to work night shifts and enter hazardous sectors like mining, provided companies ensure safety and obtain consent. Mandaviya said the rules promote gender-neutral employment and help raise women’s participation in the workforce.
The reforms also broaden social security. Establishments with even one employee in hazardous processes must enrol in the Employees’ State Insurance Corporation. ESIC coverage will extend nationwide, instead of in limited notified areas as earlier. This change aims to bring millions of unprotected workers under health insurance.
Together, the four labour codes give companies more flexibility in hiring and restructuring. At the same time, the rules strengthen worker rights, expand benefits and create national-level standards for safety and wages. As the new framework takes effect, India enters a new phase of labour governance that seeks to balance growth, fairness and protection.
