India has rolled out one of its biggest labour reforms in decades. The government has merged 29 old labour laws into four modern labour codes to simplify compliance, improve working conditions, and support a changing workforce.

These updates affect every employee, employer, HR team, contractor, and gig worker. This blog helps you understand the changes in a simple and clear way.

Additional Read: Who Protects the Worker? Exploring Global Labour Laws and Worker Compensation Systems

What Are the Four New Labour Codes?

The government has reorganized existing laws into four major codes:

1. Code on Wages

Sets rules for minimum wages, payment timelines, and equal pay.

2. Industrial Relations Code

Covers hiring, firing, reskilling, and dispute resolution.

3. Social Security Code

Extends benefits like PF, ESIC, and insurance to more workers, including gig and platform workers.

4. Occupational Safety, Health & Working Conditions Code

Focuses on safe working conditions, health standards, and welfare facilities.

Together, these codes aim to make India’s labour market more transparent and easier to regulate.

Key Changes Affecting Employers

Higher Threshold for Layoffs and Retrenchment

Companies with up to 300 employees can now lay off or retrench without government approval (previous limit was 100).
This gives businesses more operational flexibility.

Flexible Working Hours (8–12 Hours/Day)

Employers can assign up to 12-hour shifts, as long as weekly hours do not exceed 48 hours.
Overtime must be paid at double the regular rate.

Nationwide Contractor License

Instead of separate state-level permits, businesses can now use one license valid for five years across India.

Simplified Compliance

Merging 29 laws reduces paperwork, inspections, and compliance gaps.

Key Changes Affecting Workers

Mandatory Appointment Letters

Every employee—including workers in the unorganized sector—must receive a written job appointment letter.

National Minimum Wage Floor

A countrywide wage floor aims to reduce inequality between states.

Social Security for Gig & Platform Workers

Delivery partners, ride-hailing drivers, freelance workers, and platform workers will now have formal recognition and access to social security benefits.

Benefits for Women Workers

• 26 weeks maternity leave extended widely
  
• Night shifts permitted with required safety measures
  
• More opportunities for participation and earning
  

Equal Pay for Equal Work

Employers must ensure no wage discrimination across genders or employment categories.

Why New Labour Law Changes Matter

These reforms modernize India’s labour system, reduce confusion, and support a fast-growing workforce. But the impact will depend on how states implement and enforce the codes.

Workers gain more formal protection, while businesses gain compliance clarity and operational flexibility.

Challenges and Concerns of New Labour Law

• Trade unions argue the codes may weaken job security.
  
• State-level delays could slow implementation.
  
• Awareness remains low among workers and small businesses.
  

Understanding your rights and responsibilities will help you adapt smoothly.

What Employers Should Do Now

• Update employment letters and contracts
  
• Review working hours, overtime, and shift policies
  
• Check contractor licensing requirements
  
• Monitor new state-level rules
  
• Train HR teams to follow updated compliance
  

What Workers Should Do Now

• Ask your employer for a written appointment letter
  
• Verify your wage structure and overtime payment
  
• Confirm eligibility for social security benefits
  
• Learn your rights regarding night shifts and maternity leave
  
• Keep documentation of working hours, pay, and duties
  

How Labour Law Changes Shape the Future of Work

The new labour codes can bring positive change if adopted properly—encouraging fairness, flexibility, and wider social protection. Both workers and employers should stay informed and adjust their processes as the implementation progresses.

Need Legal Help Understanding the New Labour Law? Contact Us Today

If you want professional guidance, help with compliance, drafting employment contracts, resolving labour disputes, or understanding your rights. Get expert legal assistance at office of advocate OR Call At +91-9902799884, our team provides clear, practical, and reliable support for employers, employees, and gig workers.