(MENAFN- Live Mint) In a major overhaul of India's labour framework, the Government of India has announced four new labour codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. India's new labour codes, that are effective from November 21, 2025, mark a significant shift from old rules, expanding worker protections and modernising employment practices.

Under the old system, employers were not required to issue appointment letters, but the new codes make written appointment letters mandatory for all workers. Minimum wages earlier applied only to scheduled industries, leaving many workers outside coverage; the new labour codes guarantee a statutory right to minimum.

Pre Vs post labour reforms: What is changed?

The new labour ecosystem is set to bring major changes across India's employment, wages, workers' safety and compliance. The Union government called the new labour codes a“historic” decision and that the new additions will rationalise 29 existing labour laws, modernise regulations and improve workers' welfare, thus creating a future-ready workforce and stronger, more resilient industries under Aatmanirbhar Bharat.

Here is a comparison of the labour system before and after the changes:

	Pre Labour Reforms	Post Labour Reforms
Formalisation of Employment	No mandatory appointment letters.	Mandatory appointment letters to all workers.
Social Security Coverage	Limited Social Security Coverage.	Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage, such as PF, ESIC, insurance, and other social security benefits.
Minimum Wages	Minimum wages applied only to scheduled industries/employments; large sections of workers remained uncovered.	Under the Code on Wages, 2019, all workers to receive a statutory right minimum and timely wage payment.
Preventive Healthcare	No legal requirement for employers to provide free annual health check-ups to workers.	Employers must provide all workers above the age of 40 years with a free annual health check-up.
Timely Wages	No mandatory compliance for employers payment of wages.	Mandatory for employers to provide timely wages,
Women workforce participation	Women's employment in night shifts and certain occupations was restricted.	Women are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures. They will also get equal opportunities to earn higher incomes – in high paying job roles.
ESIC coverage	ESIC coverage was limited to specific areas and industries; establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform mandatory ESIC coverage across India.	ESIC coverage and benefits are extended Pan-India - voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes. Social protection coverage will be expanded to all workers.
Compliance Burden	Multiple registrations, licenses and returns across various labour laws.	Single registration, PAN-India single license and single return.

Why were these new codes added?

Many of India's labour laws were framed between the 1930s and 1950s – pre-Independence and early post-Independence era – a period when the concept of digital economy or gig economy was not known.

According to the government, India continued to operate under this fragmented framework with overlapping compliances, outdated processes, and limited protection for workers, especially those outside the formal sector for decades.

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“The Four Labour Codes is a move toward replacing this patchwork with a uniform, modern legal framework that the government says will create a workforce that is“protected, productive and aligned with the evolving world of work,” paving the way for a more resilient, competitive and self-reliant nation,” it said.

'Shramev Jayate': PM Modi on India's new labour codes

Speaking on the implementation of India's new labour codes, Prime Minister Narendra Modi wrote on X,“Shramev Jayate! Today, our Government has given effect to the Four Labour Codes. It is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers. It also significantly simplifies compliance and promotes 'Ease of Doing Business.'”

Also Read | India gets new labour codes on minimum wage, gratuity, social security

He further added that these codes will serve as a“strong foundation for universal social security, minimum and timely payment of wages, safe workplaces and remunerative opportunities...especially Nari Shakti and Yuva Shakti.”

It will also protect the rights of workers and strengthens India's economic growth and boost job creation in the country, he added in the X post.

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