The Four New Labour Codes Take Effect
On 21 November 2025, the Ministry of Labour & Employment confirmed the implementation of four consolidated labour codes: the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020). These codes replace 29 older laws, many of which were fragmented and outdated. The government’s official notification highlights that the objective is to simplify compliance, reduce overlapping provisions, and create a unified framework for wages, industrial relations, social security, and workplace safety. This reform is part of India’s broader strategy to make labour laws “transparent, technology-driven, and future-ready” .
Simplified Hiring & Layoff Regulations
The Industrial Relations Code introduces a significant change in retrenchment rules. Companies employing up to 300 workers can now lay off staff without prior government approval, compared to the earlier threshold of 100. The government argues this will improve ease of doing business and allow firms to respond quickly to market conditions. However, retrenchment compensation and notice periods remain mandatory, ensuring workers are not left without safeguards. This provision is officially linked to India’s “Ease of Doing Business” reforms.
Enabling Extended Shifts & Empowering Women
Under the OSHWC Code, employers can schedule longer shifts and allow women to work night shifts, provided they implement strict safety measures and obtain written consent. The government states this change is aimed at increasing female participation in sectors like manufacturing and services. Additional provisions include mandatory appointment letters for all employees and annual health check-ups for workers aged 40 and above, reinforcing transparency and health standards.
Recognising Gig & Platform Workers
For the first time, the Social Security Code formally recognises gig and platform workers. Aggregator companies must contribute 1–2% of their annual turnover (capped at 5% of payments to workers) to a social security fund. This fund will provide benefits such as insurance, pensions, and provident fund coverage. The government has also introduced an Aadhaar-linked Universal Account to ensure portability of benefits across states. This step reflects India’s commitment to protecting workers in the growing digital economy.
Striking a Balance: Growth vs Worker Security
While the government promotes these reforms as a way to boost competitiveness and job creation, trade unions have expressed concerns about reduced job security and longer working hours. The Ministry acknowledges these concerns and has promised strict enforcement of safety and social security provisions. The success of these reforms will depend on effective monitoring and continued dialogue between stakeholders.
Towards a Modern, Inclusive Labour Ecosystem
By consolidating fragmented laws into four comprehensive codes, India has taken a historic step toward creating a simpler, technology-driven labour framework. The government’s vision is to ensure social justice and economic growth go hand in hand, making India’s labour market more resilient and inclusive in the face of global changes.
Leap 29 perspective
“This feels like a historic moment. For decades, labour laws were rigid and outdated. Now, India has a framework that reflects modern realities—digital work, gender inclusion, and health standards. I see this as an opportunity to create a fairer, more dynamic labour market. But reforms are only the first step. Implementation, monitoring, and continuous improvement will decide whether this becomes a success story. If India gets this right, it could set an example for other emerging economies on how to balance growth with worker protection.” Simon Duff – Director Leap29
How Leap29 Can Help with India EOR Solutions
Expanding into India can feel overwhelming with its complex labour laws and compliance requirements. Leap29 makes this process simple by acting as your Employer of Record (EOR).
We handle everything—from drafting compliant employment. contracts and managing payroll to ensuring social security contributions under India’s latest labour codes. Our team takes care of onboarding and HR support, so you don’t need to set up a local entity or worry about legal risks. This means you can hire top talent quickly and focus on growing your business, while we manage the details behind the scenes.
