India’s New Labour Law

Last updated: November 29, 2025 Type: Article

India's labour system has been rebuilt from the ground up. Twenty-nine scattered laws have been compressed into four clean, modern Codes. These came into effect in 2025, marking the biggest workplace overhaul since Independence.

The Four New Labour Codes

Together, they regulate wages, social security, safety, working hours, hiring, firing, and the rights of unorganised/gig/platform workers.

Who is Covered?

Short answer: Private + Government

Private-sector employees

Fully covered – IT offices, retail shops, hospitals, factories, startups, platforms, contractors.
Example: A private-sector accountant → fully covered.
Example: A Swiggy/Zomato delivery partner is considered a gig/platform worker under the Social Security Code.

Government sector

Permanent govt officers: service rules apply.
Contract/outsourced staff in govt offices: covered under Codes.
PSUs: covered unless separate rules override.
Example: A contractual cleaner in a district hospital → covered.
Example: A permanent State Secretariat employee is governed by service rules.

Key Benefits for Workers

Universal Minimum Wages (Code on Wages)

Minimum wage applies to all employees – organised, unorganised, gig, contract, and permanent.
Example: A shop worker in a small grocery store must get at least the notified minimum wage.

Timely Payment Rules

Monthly salary: within 7 days of next month.
Final dues on resignation/termination: within 2 working days.

Standardised Wage Structure

Basic + DA + Retaining Allowance = at least 50% of total pay.
Example: Employers can't hide salary inside fake allowances like mobile allowance, tea allowance, and chair allowance.

Social Security for All (Code on Social Security)

Coverage expands to contract workers, fixed-term employees, gig workers, platform workers, and unorganised workers.
Fixed-term employees get gratuity after 1 year.

Safety and Health (OSH Code)

Safe working environment
Annual health check-ups
Clean toilets, drinking water, facilities
Special rules for hazardous industries

Specific Provisions for Women

Equal pay
Night shift allowed with consent and safety
Safety includes transport, lighting, security, washrooms
Women in gig/contract/unorganised roles get social security
Maternity Benefit Act continues separately

What This Means For The Future

Transparent wages
More formal employment
Social security for gig workers
More equality for women
Fewer loopholes for employers

FAQs: What the New Labour Codes Mean for You

1. Who is covered under the new labour laws — private-sector only, or government employees too?: The Codes apply to private-sector, contract/outsourced staff in govt/PSUs, and gig/platform/unorganised workers. Permanent government servants remain under service rules.
2. Does the law guarantee a minimum wage for everyone?: Yes. Minimum wage applies to all employees under the Code on Wages.
3. What if I am paid monthly — when must I receive my salary?: No later than the 7th of the next month. Final dues must be paid within 2 working days.
4. Do contract or fixed-term employees get the same benefits as permanent staff now?: Yes. They get social security and gratuity (after one year).
5. Are gig and platform workers covered too?: Yes. They are recognised and eligible for social security.
6. What does "wage structure standardisation" mean?: At least 50% of pay must be basic + DA + retaining allowance.
7. Are there protections for workplace safety?: Yes. The OSH Code provides safety, health check-ups, and clean facilities.
8. What about women employees—any special provisions?: Equal pay, night shift with safety, and social security coverage.
9. Does this law guarantee maternity leave?: No. Maternity rules continue under separate laws.
10. If I resign or am terminated, how soon should I get my final payment?: Within 2 working days.
11. Can employers exploit loopholes by calling workers "freelancers"?: The Codes cover gig/platform workers, reducing misclassification.
12. Does everyone automatically get social security?: No. Coverage depends on employer registration and compliance.
13. Has the law simplified compliance for employers?: Yes. Four unified Codes replace 29 old laws.
14. What should I check before accepting a job?: Appointment letter, wage structure, employer registration, working hours, safety rules.

Also See

Child and Adolescent Labour (Prohibition & Regulation) Act, 1986

Job Scam Alert: Your Legal Rights