From pay to leave: How India’s new labour laws impact you | 7 key takeaways

India is transforming its labour framework by consolidating 29 laws into four comprehensive Labour Codes, enhancing protections for workers across sectors.

India has rolled out a sweeping revamp of its labour framework, bringing 29 separate laws under four streamlined Labour Codes. The reforms, covering various factors, from wages, industrial relations, to social security, and workplace safety, aim to provide protection to workers and create a more stable environment for both employees and employers.

The Indian government has introduced four Labour Codes, streamlining 29 laws to improve worker protection and workplace safety. (REUTERS)

From gig workers and fixed-term staff to plantation labourers and IT employees, the changes are set to touch nearly every segment of the workforce.

Based on the Ministry of Labour and Employment’s latest press statement, here are the major highlights of India's new labour laws:

1. Minimum wages and formalisation for all: For the first time, every worker, irrespective of sector, skill level, or job type, has a statutory right to minimum wages. Employers must issue appointment letters across the board, bringing millions of workers, including those in unorganised and gig sectors, into formal employment records.
2. Social security coverage vastly expanded: Workers across sectors now qualify for Provident Fund, insurance, and ESIC benefits. Gig and platform workers will get a dedicated social-security fund, with aggregators contributing 1 to 2 per cent of their turnover, the ministry said. A universal Aadhaar-linked account number will make benefits reachable nationwide.
3. Significant boost to women’s workforce participation: The Codes explicitly ban gender-based wage discrimination and allow women to work night shift, with mandatory safety measures. They also widen the family definition for female workers to include parents-in-law and require women’s representation in grievance committees.
4. Higher safety standards and mandatory health check-ups: Workers above age 40 must receive a free annual health examination. Industries handling hazardous materials must form safety committees, ensure protective equipment, and follow national safety standards. Commuting accidents in some cases will be treated as work-related, the press release added.
5. Faster gratuity and better protections for fixed-term and contract staff: Fixed-term employees now get gratuity after just one year of service, down from five. They must receive the same wages and benefits as permanent workers. Contract workers will get health and social-security benefits from the principal employer.
6. Stronger wage protections and predictable working hours: Overtime must be paid at double the normal wage. Wages must be released within tighter timelines, and paid leave eligibility now begins after 180 days of work. Many sectors, including beedi, mining, textiles, and MSMEs, will now follow standardised working hours, which are 8 to 12 hours a day, 48 hours per week.
7. Simplified compliance for employers: Businesses now need to fill out only one registration, one licence, and one annual return instead of many different forms under multiple laws. Also, instead of surprise inspections and penalties, labour officials will act more like guides, helping companies follow the rules rather than only punishing them.

With social-security coverage rising from 19 per cent in 2015 to over 64 per cent in 2025, the government says these Codes mark the next leap in creating a “pro-worker, pro-women, pro-youth” labour landscape.