India’s New Labour Codes: Key Changes you Should Know

India's new labour codes took effect on November 21, consolidating 29 older laws into four unified frameworks covering wages, leave, working hours and workplace safety for nearly all workers.

Prime Minister Narendra Modi called it "one of the most comprehensive and progressive labour-oriented reforms since Independence," writing on X that the codes "greatly empowers our workers" while simplifying compliance and promoting ease of doing business.

The four codes—Wages (2019), Industrial Relations (2020), Social Security (2020), and Occupational Safety, Health and Working Conditions (2020)—expand worker protections and modernise employment practices.

A major change includes gratuity eligibility for fixed-term employees reduced from five years to one year, with these workers now receiving the same benefits as permanent staff. Paid leave qualification has been lowered from 240 to 180 working days, benefiting seasonal and shift-based workers.

The codes formally define gig and platform work for the first time, requiring aggregators to contribute up to 2% of their turnover toward worker welfare, which is accessible across states via Aadhaar. They also include provisions for gender equality and grant women the right to work night shifts with their consent and proper safety measures.

Minimum wages now apply to all sectors, appointment letters are mandatory for every worker, and timely payment rules now cover all employees. Working hours remain eight per day and forty-eight per week, but states can offer flexible weekly schedules, and overtime must be voluntary and paid at twice the normal rate.