India's four labour codes: what changed from 21 November 2025

TL;DR: India’s four labour codes, which consolidate 29 central labour laws, became effective on 21 November 2025. The changes affect how wages are defined, who gets social security, what safety duties apply, and how employment relationships must be documented. Every employer, HR team, and legal practitioner needs to revisit employment contracts, wage computation, and gig-worker arrangements without delay.

The consolidation in brief
The four codes and what they replace
What the effective date actually means
Code on Wages: the uniform wage definition
Industrial Relations Code: what changed for employers and workers
Code on Social Security: gig workers and extended ESIC
OSH Code: safety duties, night work, and health checks
Appointment letters are now mandatory
Central and State rules: why timing still varies
What employers and HR teams should do now
What lawyers and compliance practitioners should watch
Frequently asked questions
Key takeaways

The consolidation in brief

For decades, Indian labour law was a patchwork. An employer with operations across more than one State had to track a different compliance calendar for each location, under a set of laws that had accumulated since the early twentieth century, some predating Independence. The Ministry of Labour and Employment had long identified this fragmentation as a barrier to both worker protection and business clarity.

The solution that emerged, through a process spanning several years of consultations and legislative action, was consolidation. Parliament passed four umbrella codes that fold 29 central labour laws into a single, rationalized framework. Those four codes are:

The Code on Wages, 2019
The Industrial Relations Code, 2020
The Code on Social Security, 2020
The Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code)

Major provisions of all four codes came into effect on 21 November 2025, following the government’s official notification. The Press Information Bureau confirmed the effective date. The full texts of the codes are available on India Code (indiacode.nic.in) and the Ministry of Labour and Employment’s portal (labour.gov.in).

This post walks through what changed, what it means in practice, and what you need to do about it.

The four codes and what they replace

The table below shows the scale of the consolidation. Twenty-nine central laws disappeared into four codes. This is not merely a renaming exercise: the codes changed definitions, expanded coverage, and introduced entirely new obligations.

Code	Year enacted	Laws consolidated
Code on Wages	2019	4 laws (including the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976)
Industrial Relations Code	2020	3 laws (including the Industrial Disputes Act, 1947; the Trade Unions Act, 1926; and the Industrial Employment (Standing Orders) Act, 1946)
Code on Social Security	2020	9 laws (including the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; the Employees’ State Insurance Act, 1948; the Maternity Benefit Act, 1961; and the Gratuity Act, 1972)
OSH Code	2020	13 laws (including the Factories Act, 1948; the Mines Act, 1952; and the Contract Labour (Regulation and Abolition) Act, 1970)
Total		29 laws

If you practise labour law or advise employers, you will have noticed that the Acts listed above formed the backbone of virtually every employment dispute and compliance audit. Their consolidation changes the citation format, the applicable sections, and in several cases, the substantive rule itself.

Here is what materially changes for an employer once the codes are in force.

Requirement	Before the four codes	Under the four codes
Single statutory definition of “wages”	✗ varied across statutes	✓ one uniform definition
Written appointment letter for every worker	✗ not universally mandated	✓ mandatory
Social security framework for gig and platform workers	✗ none	✓ defined, schemes enabled
ESIC coverage in establishments doing hazardous work	✗ limited	✓ extended, even with one worker

What the effective date actually means

When the government announced that the codes came into effect on 21 November 2025, it triggered the operative provisions of the legislation. However, there is an important structural point to understand before concluding that all old compliance obligations disappeared overnight.

Labour is on the Concurrent List of the Constitution of India. That means both the Union and the States have authority to legislate and to make rules under the codes. The four codes are central legislation, but many of the operational details, thresholds, and sector-specific rules come through Central rules and State-specific rules notified separately.

As of late 2025 and into early 2026, those rules were still being finalised at the Central level and notified at the State level on varying timelines. The final Central rules were expected to be notified around 1 April 2026, enabling fuller implementation. State governments notified their own rules on different schedules, which means the precise date on which every obligation became enforceable depended on where a business was located.

This is not unusual in Indian legislation. The pattern of Parliament passing an Act, followed by a gap before rules are notified, is well established. But it does mean that:

The code provisions are now the governing law.
Where rules are in place, full compliance obligations apply.
Where rules are pending, you should prepare as if they are imminent, because notification can happen at short notice.
Transitional provisions in the codes may preserve prior rights and obligations during the gap period.

You should check the current rule-notification status for each State in which you operate, through the official labour department of that State or through labour.gov.in.

Code on Wages: the uniform wage definition

The Code on Wages is the foundation of the new framework. Its most consequential change for day-to-day employment practice is the introduction of a uniform definition of “wages.”

Under the old regime, “wages” meant different things under different Acts. The Minimum Wages Act had its own definition. The Payment of Wages Act had another. The Employees’ Provident Funds Act had its own computation logic. This inconsistency created genuine legal uncertainty, and it also created opportunities for structuring remuneration in ways that artificially reduced the base on which PF contributions, gratuity, and similar statutory payments were calculated.

The Code on Wages rationalises this by establishing a common definition of wages that applies across the code framework. The uniform definition is designed to prevent employers from excluding large parts of total compensation from the wage base through allowances and reimbursements.

The practical consequence is significant. If your organisation’s pay structure was designed to keep the “basic” component low relative to total compensation (a common approach to managing PF contributions), that structure may no longer achieve the intended effect under the new definition. The base on which provident fund contributions, gratuity, and related statutory obligations are calculated is likely to be larger than before for many employees.

The Code on Wages also introduces the concept of a floor wage: a statutory minimum below which no minimum wage in any State can fall. This floor wage is set by the Central government. The intention is to end the situation where workers in some States or sectors received wages below any rational minimum, simply because the applicable State minimum had not been revised for years.

The combination of a uniform wage definition and a floor wage means that minimum wage compliance is no longer primarily a matter of checking whether you are paying above the State-notified minimum. You also need to verify that the State minimum itself has been revised to meet the Central floor, and that your wage computation actually counts as “wages” under the new definition.

Industrial Relations Code: what changed for employers and workers

The Industrial Relations Code consolidates the three central laws that governed industrial disputes, trade union registration, and standing orders for establishments. For most employers and practitioners, the key changes relate to how employment relationships are governed day-to-day and how disputes are resolved.

The code retains the essential architecture of the Industrial Disputes Act, but rationalises thresholds, redefines categories of workers, and updates procedural rules. The definition of “worker” under the code is broader than the comparable definition in the old Industrial Disputes Act, bringing more categories of workers within the code’s protection framework.

For standing orders (the formal document that governs conditions of service in industrial establishments), the code updates the threshold for applicability and introduces model standing orders. Smaller establishments may be covered by model standing orders without the need for a separate certification process, which reduces procedural overhead but also means that the model order’s terms become the applicable standard.

The dispute resolution framework under the code introduces conciliation, mediation, and arbitration mechanisms with clearer timelines. The intent is to reduce the backlog of cases in labour tribunals by encouraging resolution at an earlier stage.

For workers, the code expands the definition of who qualifies as a “worker” and extends certain protections to categories that were previously in a grey area. For employers, the code changes the requirements around notice periods for retrenchment and layoffs in larger establishments, though the specific thresholds depend on the applicable rules being notified in the relevant State.

The Code on Social Security is the most expansive of the four codes in terms of who it covers. Its most discussed innovation is the formal inclusion of gig workers and platform workers within the social security framework.

Under the old regime, social security (primarily the Employees’ Provident Fund and the Employees’ State Insurance scheme) applied to workers in formal employment relationships. Gig workers, those who work through platforms like ride-hailing, food delivery, or freelance marketplaces, existed outside the formal system. They had no access to provident fund accumulations, no ESIC health cover, and no maternity benefits.

The Code on Social Security changes this. It creates a framework for extending social security benefits to gig workers and platform workers. The code defines these categories and contemplates that aggregators (the platforms that deploy gig workers) will contribute to a social security fund for these workers. The specific contribution rates and the mechanisms for operationalising this will depend on rules being notified, but the legal framework for inclusion now exists.

This matters enormously for any business that uses platform-based or gig workers. If your organisation operates a platform or uses gig workers through a platform, you need to understand whether your arrangements fall within the code’s definition of “aggregator” and what contribution obligations may apply to you.

The code also extends ESIC coverage significantly. Under the new framework, ESIC coverage must apply even to an establishment with a single employee engaged in a hazardous process. Previously, ESIC coverage was triggered only above a minimum headcount threshold. This extension means that small workshops, manufacturing units, and service providers operating with a minimal workforce in hazardous sectors can no longer assume they are outside the ESIC net.

Beyond these headline changes, the Code on Social Security also rationalises the gratuity framework, updates the maternity benefit provisions, and brings building and construction workers’ welfare arrangements within the unified framework.

OSH Code: safety duties, night work, and health checks

The Occupational Safety, Health and Working Conditions Code consolidates thirteen laws, including the Factories Act, 1948, which was the principal legislation governing working conditions in manufacturing for most of independent India. The OSH Code is therefore the most significant change for the manufacturing, mining, construction, and plantation sectors.

The code retains the structural approach of the Factories Act (duties on occupiers, safety committees, welfare facilities) but updates it for modern workplaces and extends its reach to sectors and categories of workers not previously covered.

Three changes deserve particular attention.

Night work for women workers

The OSH Code permits women to work at night and in all types of establishments. This is a departure from the prior regime, under which the Factories Act and several State-level rules restricted or prohibited night work for women in certain categories.

The permission is not unconditional. It requires the consent of the woman worker, and employers must provide the required safety measures. The specific safety obligations, including the nature of transport and facility requirements, are addressed in the applicable rules. The policy direction is clear: the restriction is lifted, but the duty to provide a safe working environment remains and is reinforced.

For employers who previously operated single-sex shifts to comply with the old restrictions, the code opens operational flexibility. For workers, consent is the operative safeguard.

Annual health check-up at the employer’s cost

The OSH Code introduces an obligation for employers to provide an annual health check-up for workers above 40 years of age. This is provided at the employer’s cost, not the worker’s.

This is a new obligation for most employers. A worker aged 40 or above is entitled to a health assessment every year, and the cost of that assessment falls on the employer. The specific scope and conduct of the check-up will be defined through rules, but the baseline obligation is established in the code.

For HR teams managing large workforces with a significant proportion of workers above 40, this has cost and operational implications. You will need a process for scheduling, conducting, and documenting these assessments.

Unified safety obligations across sectors

By bringing thirteen laws under one code, the OSH Code creates a more consistent set of safety duties across industries. The differences between what was required under the Factories Act, the Mines Act, the Dock Workers Act, and others are rationalised. This is welcome from a compliance-management perspective, but it also means that the specific exemptions or relaxations that existed under individual Acts may no longer apply in the same form.

If your organisation’s safety compliance programme was built around the specific requirements of the Factories Act or another individual Act, you should audit that programme against the OSH Code and its applicable rules.

Appointment letters are now mandatory

One of the most practically significant changes across the code framework is the requirement for mandatory appointment letters for all workers.

Under the prior regime, many employers, particularly in the unorganised sector and among smaller establishments, did not issue formal appointment letters. Workers were hired on verbal agreements, handshakes, or through contractors, with no written record of the terms of employment. This left workers without documentation to establish their employment relationship, their wage entitlement, or their period of service, all of which matter enormously in disputes and for accessing statutory benefits.

The four codes require that every worker receive an appointment letter. This is not a recommendation: it is a legal obligation. The appointment letter is the documentary foundation of the employment relationship under the new framework.

For employers who do not currently issue appointment letters to all workers (including contract workers, part-time workers, and workers in smaller establishments), this is an immediate compliance requirement. The appointment letter must set out the terms of employment in a manner consistent with the code requirements.

For workers, the appointment letter is the document that establishes their entitlement. A worker who can produce an appointment letter is in a significantly stronger position in any dispute about wages, conditions, or severance.

From a legal drafting perspective, the mandatory appointment letter requirement means that the employment contract is now a statutory document for all workers, not just white-collar employees in formal organisations. Practitioners advising on employment matters should review the templates they use and ensure they are aligned with the code requirements and the applicable model standing orders.

Central and State rules: why timing still varies

A recurring theme in understanding the codes is the distinction between the legislation itself and the rules made under it. The codes are central legislation: they set the framework, define key terms, establish rights and obligations, and specify penalties. But many of the details, the thresholds, the procedures, the forms, the contribution rates for gig worker social security, and the specific safety standards for different industries, come through rules.

Rules are made separately by the Central government (for centrally administered matters) and by State governments (for matters within State jurisdiction). Because labour is on the Concurrent List, States have authority to legislate and to notify rules within the code framework. States that have already notified their rules are ahead of States where notification is pending.

This creates a compliance map that is not uniform across India. An employer with factories in Maharashtra, Tamil Nadu, and Uttar Pradesh may be operating under different applicable rules in each location, at least during the transitional period. The code provisions apply everywhere, but the specific operational requirements depend on what rules have been notified where.

The practical implication is that you cannot rely on a single national compliance checklist. You need to track the rule-notification status for each State in which you operate. The Ministry of Labour and Employment’s portal (labour.gov.in) publishes notifications, and State labour departments publish their own rules. Monitoring these is now a standing item on any serious compliance programme.

The Central rules were expected to be fully notified around 1 April 2026. If that timeline held, the gap period for Central-rule-dependent obligations should have closed by the time you are reading this. State rules vary: some States moved early, others are still in progress.

What employers and HR teams should do now

The codes are in effect. Waiting to act until every State has notified every rule is not a defensible compliance posture, because the code provisions themselves carry legal weight and because enforcement action does not necessarily wait for rules to be fully settled on all points.

Here is a structured list of actions organised by code.

Code on Wages

Review your pay structure and model the effect of the uniform wage definition on PF contributions, gratuity, and other statutory payments computed on the wage base.
Verify that the wages you pay meet the applicable floor wage, and that the State minimum wage in each location has been revised to meet or exceed the Central floor.
Update payroll systems to reflect the new wage definition for statutory deduction and contribution calculations.

Industrial Relations Code

Review whether the standing orders applicable to your establishment need to be updated, replaced by model standing orders, or freshly certified under the new framework.
Audit retrenchment, layoff, and closure procedures against the code’s updated requirements.
Review the categorisation of your workforce against the broader definition of “worker” in the code to identify workers who may now fall within protections they were not previously covered by.

Code on Social Security

If your organisation operates a platform or uses gig workers through a platform, map your arrangements against the code’s definitions of “gig worker,” “platform worker,” and “aggregator.”
Review ESIC coverage, particularly if you have smaller establishments or units engaged in hazardous processes that previously fell below the coverage threshold.
Update gratuity computation to align with the new code provisions and the uniform wage definition.

OSH Code

Review your night-shift policies. If you have women workers who were previously restricted to day shifts by compliance requirements, your policies and shift structures may need updating. Ensure consent and safety protocols are documented.
Establish a process for providing annual health check-ups for workers above 40 years of age at the employer’s cost.
Audit your safety management system against the OSH Code provisions and the applicable rules to identify gaps left by the transition from sector-specific laws.

Appointment letters (all codes)

Issue appointment letters to every worker, including contract workers, part-time workers, and workers in smaller establishments, if you have not already done so.
Review the template content to ensure it covers all required terms.
Establish a process for issuing appointment letters to new hires on or before their joining date.

What lawyers and compliance practitioners should watch

If you advise clients on employment and labour law, the codes create a significant volume of work across multiple practice areas.

Contract review and redrafting. Employment contracts, standing orders, contractor agreements, and gig-worker engagement terms all need to be reviewed and, in most cases, revised to align with the code framework. The mandatory appointment letter requirement alone creates substantial work for clients who have large workforces.

Wage computation opinions. The uniform wage definition will generate disputes about how it applies to specific pay structures. Opinions on whether particular allowances are included in “wages” under the code, and advice on restructuring compensation within the new framework, will be in demand.

Gig worker arrangements. The code creates a legal category for gig and platform workers that did not previously exist in central legislation. How the social security contribution obligations apply to specific arrangements, what counts as an “aggregator,” and how existing platform contracts should be revised are live advisory questions.

ESIC compliance. The extension of mandatory ESIC coverage to establishments with a single employee in hazardous processes will catch many smaller operators who assumed they were outside the system. Advising these clients on coverage, registration, and arrears risk is immediate work.

Dispute resolution. The Industrial Relations Code changes the procedural landscape for industrial disputes. Practitioners handling labour litigation need to update their understanding of the applicable forums, timelines, and procedures.

Rule-tracking as a standing service. Given the Concurrent List structure and the variable timing of State rule notifications, offering clients a systematic update service on rule notifications in their operating States is a valuable and differentiated service.

At Niyam (niyam.ai), a legal AI built specifically for India and grounded in 72,000+ Indian judgments, you can search the text of the four codes, trace how prior decisions under the old Acts inform interpretation of the new provisions, and get every answer with a citation you can open and verify. Reach us at [email protected] if you have questions about the platform.

For related reading on recent legal changes that affect business and compliance practice, see our post on the Income Tax Act 2025 changes from April 2026 and our guide on AI-assisted contract drafting and review workflows.

Frequently asked questions

When did the four labour codes come into force?

Major provisions of all four labour codes became effective on 21 November 2025, following a government notification confirmed by the Press Information Bureau. The codes are now the governing legislation for the subject matters they cover. The full Central rules and certain State rules were being finalised and notified on a rolling basis through early 2026, so the precise date on which every operational detail became enforceable depended on the relevant rules being in place.

Which 29 laws were replaced by the four codes?

The four codes together consolidate 29 central labour laws. Examples include the Minimum Wages Act, 1948 and the Payment of Wages Act, 1936 (now in the Code on Wages), the Industrial Disputes Act, 1947 and the Trade Unions Act, 1926 (now in the Industrial Relations Code), the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees’ State Insurance Act, 1948 (now in the Code on Social Security), and the Factories Act, 1948 and the Contract Labour (Regulation and Abolition) Act, 1970 (now in the OSH Code). The full list is in the respective codes and the Ministry of Labour and Employment’s official communications.

Does the new wage definition affect provident fund contributions?

Yes, it is likely to for many employers. The Code on Wages establishes a uniform definition of “wages” that is intended to prevent the exclusion of large components of total compensation through allowances and reimbursements. If your organisation’s pay structure includes a low basic component and significant allowances (a common approach to managing PF contributions), the uniform wage definition may result in a higher wage base for computing PF contributions. You should model the effect on your specific pay structure and seek legal advice if the impact is material.

The Code on Social Security creates a legal framework for extending social security to gig workers and platform workers. The code defines these categories and establishes that aggregators (the platforms through which gig workers are deployed) will contribute to a social security fund for them. The specific contribution rates, the administration of the fund, and the mechanics of benefit delivery depend on rules being notified. The framework exists in law; full operationalisation depends on rule notification and, in some cases, State-level action.

What is the floor wage and who sets it?

The floor wage is a Central government-set minimum below which no State can set its minimum wage. It creates a genuine national floor: no worker in India should receive a wage below the amount the Central government has determined to be a baseline. States are free to set their minimum wages above the floor but not below it. The floor wage concept addresses the long-standing problem of States leaving their minimum wages unrevised, creating situations where the notified minimum was too low to serve its intended function.

Who must receive a mandatory appointment letter?

The code framework requires mandatory appointment letters for all workers. This extends beyond formally employed white-collar staff. Contract workers, part-time workers, workers in smaller establishments, and workers in the unorganised sector are covered. The appointment letter must document the terms of employment. Employers who have not been issuing appointment letters to all categories of workers must do so now: this is a legal requirement, not a best-practice recommendation.

Can women now work night shifts in all industries?

The OSH Code permits women to work at night and in all types of establishments. This removes the blanket restrictions that existed under the Factories Act and many State-level rules. However, the permission is conditional: women workers must consent to night work, and employers must provide the safety measures required under the applicable rules. The rules specify what those safety measures include. Consent and safety are non-negotiable conditions, not optional add-ons.

What is the annual health check-up obligation?

The OSH Code requires employers to provide an annual health check-up for workers above 40 years of age. The cost is borne by the employer, not the worker. The specific scope of the check-up is addressed in the applicable rules. For HR teams, this means establishing a process for identifying eligible workers, scheduling and documenting health assessments each year, and bearing the associated cost. There is no opt-out: it is a statutory obligation.

Does ESIC now apply to establishments with a single employee?

Under the Code on Social Security, ESIC coverage is mandatory even for an establishment with a single employee engaged in a hazardous process. The prior regime required a minimum number of employees before ESIC coverage was triggered. This threshold-based exclusion no longer applies in hazardous-process settings. Small workshops, manufacturing units, and service providers in hazardous categories that previously assumed they were outside the ESIC framework need to check their coverage status and register if they are not already covered.

How does labour being on the Concurrent List affect implementation?

Labour is listed in the Concurrent List (Entry 22 to 24 of List III) of the Seventh Schedule to the Constitution of India. This means both Parliament and State legislatures can make laws on labour matters. The four codes are central legislation, but States can (and must) make rules under the codes for matters that fall within the concurrent jurisdiction. This is why the timing of full implementation varies by State: some States have notified their rules early, others are still in progress. An employer operating in multiple States needs to track the rule-notification status in each State separately.

What happens to contracts and standing orders under the old Acts?

The codes include transitional provisions that address what happens to existing rights, obligations, contracts, and proceedings that were created or commenced under the old Acts. Generally, existing rights are preserved and existing disputes continue under the applicable forum. Employment contracts and standing orders that were valid under the old Acts remain operative during the transitional period, but they should be reviewed and updated to align with the code framework. Particularly where standing orders certified under the Industrial Employment (Standing Orders) Act, 1946 are in place, you should assess whether they need to be recertified or replaced.

Is the Code on Wages applicable to all industries and all workers?

The Code on Wages has broad coverage. It applies to all establishments (subject to definitions in the code) and to all employees (subject to the wage ceiling for certain provisions). The floor wage provisions apply universally within India. The specific application to particular categories of workers and establishments is addressed in the code and its rules. Unlike the Minimum Wages Act, which covered scheduled employments only, the Code on Wages is designed for more universal application.

How does the OSH Code differ from the Factories Act?

The Factories Act applied primarily to factories meeting specific criteria (power use, number of workers). The OSH Code covers a wider range of establishments and sectors, including mines, docks, plantations, construction, and certain service establishments, under a unified framework. The OSH Code rationalises the obligations that were previously spread across thirteen separate Acts. Some sector-specific provisions are preserved through schedules and rules, but the structural framework is now common. Safety committees, welfare facilities, and occupier duties follow a more consistent template across covered establishments.

Will there be a new PF contribution rate?

The Code on Social Security addresses provident fund matters but does not itself change the contribution rate. The rate of PF contribution is set through the rules and the administrative framework of the Employees’ Provident Fund Organisation. What does change under the codes is the wage base on which contributions are computed, through the uniform wage definition in the Code on Wages. This may increase effective PF contributions for many employers even if the stated rate remains unchanged. You should model the combined effect of the new wage definition and the existing contribution rate on your payroll.

Do the codes apply to contract workers and third-party staffing arrangements?

Yes. The codes address contract labour and third-party staffing arrangements. The OSH Code, in particular, incorporates provisions derived from the Contract Labour (Regulation and Abolition) Act, 1970. The obligation to issue appointment letters extends to contract workers. Social security coverage under the Code on Social Security covers workers in contract arrangements. Employers who use contract labour or third-party staffing should review their principal employer obligations under the new framework, and ensure that the contractors through whom they source labour are compliant.

What are the penalties for non-compliance with the codes?

The codes each specify penalties for non-compliance. The penalty framework varies by code and by the specific obligation violated. The OSH Code, reflecting its safety focus, includes penalties for contraventions that result in harm. The Code on Wages includes penalties for failing to pay minimum wages or for non-payment of wages on time. Penalties can include fines and, in certain cases, imprisonment. The specific quantum and structure of penalties are set out in each code. Compliance cannot be deferred on the assumption that enforcement will be slow to follow notification.

What should I do if my State has not yet notified its rules?

Even if your State has not yet notified all its rules under the codes, the code provisions themselves are in effect. You should comply with the code provisions as they stand. Where a specific obligation depends on a State rule that has not yet been notified, you should prepare as if notification is imminent (because it can happen with short notice) and track the State labour department’s publications. For matters that depend entirely on State rules, you may have a brief window, but operating on the assumption that compliance is not required until rules are notified is legally risky.

Where can I find the official text of the four codes?

The authoritative text of all four codes is available on India Code (indiacode.nic.in), the official digital repository of Indian legislation. The Ministry of Labour and Employment’s website (labour.gov.in) publishes the codes, rules, notifications, and administrative circulars. PIB publishes official government releases on implementation milestones. These are the sources to rely on. For legal research into how courts and tribunals are interpreting the new provisions in relation to the old Acts, a tool built on Indian legal sources can help you trace the interpretive thread without starting from scratch.

How does the new framework affect gratuity calculations?

The Code on Social Security incorporates and updates the gratuity framework that was previously in the Payment of Gratuity Act, 1972. The uniform wage definition under the Code on Wages also affects gratuity computation, because gratuity is calculated as a function of last drawn wages. If the wage definition results in a higher wage base, the gratuity payout on separation will also be higher. Employers should model the gratuity impact as part of the overall wage-definition review. The eligibility criteria and the rate of gratuity (15 days of wages for each year of completed service) are preserved in the code framework.

What is Niyam and how can it help with the labour codes?

Niyam (niyam.ai) is a legal AI built for India, grounded in 72,000+ Indian judgments, and designed to give you cited, verifiable answers on Indian law. For the four labour codes, Niyam lets you search the code text, trace how courts interpreted the predecessor Acts (which remains relevant for understanding how the new provisions will be applied), and get answers with citations you can open immediately. You can reach the Niyam team at [email protected].

Key takeaways

The four labour codes are the most significant restructuring of India’s central labour legislation in decades. Twenty-nine laws have become four. The effective date was 21 November 2025. Here is what you need to hold in mind.

The framework has changed. Citations, sections, and the structure of compliance obligations have changed. Legal research into labour matters must now start with the codes, not the Acts they replaced.

The wage definition matters immediately. The uniform wage definition under the Code on Wages affects PF contributions, gratuity, and every other statutory payment computed on a wage base. Model the impact on your pay structure without delay.

Gig workers are in the system. The Code on Social Security creates a framework for extending social security to gig and platform workers. If your business deploys or platforms such workers, your obligations need to be assessed now.

ESIC coverage has expanded. A single employee in a hazardous process can trigger mandatory ESIC coverage. Small operators in relevant sectors should check their status.

Appointment letters are for everyone. Every worker, regardless of category or establishment size, must receive an appointment letter. This is law, not guidance.

Night work for women is open, with conditions. The OSH Code removes the restriction on women working nights, subject to consent and safety. Update your shift policies.

Annual health check-ups are an employer cost. Workers above 40 are entitled to an annual health check-up at the employer’s expense under the OSH Code.

State rules vary. Track rule notifications in every State where you operate. The codes are in force; the rules determine the operational details.

For practitioners, the codes create a sustained volume of advisory work across contract review, wage computation, gig-worker structuring, ESIC compliance, and dispute handling.

For more on changes affecting legal and business compliance this year, read our overview of the Income Tax Act 2025 changes from April 2026 or our practical guide on how citators work in Indian legal research.

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