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 "New Labour Codes")
New Labour Codes
About New Labour Codes
The implementation of the four Labour Codes in 2025 marks a historic transformation of India’s regulatory framework, replacing 29 fragmented labour laws with a modern and streamlined system aimed at protecting and empowering workers. These comprehensive reforms, in effect from November 21, 2025, ensure better wages, enhanced social security, and greater workplace safety, particularly benefitting sectors like gig work, MSMEs, and digital media. By mandating appointment letters, expanding ESIC coverage, and extending legal protections to all forms of employment, the codes pave the way for a future-ready, resilient workforce. This overhaul aligns India’s labour ecosystem with global standards and supports both enterprise growth and worker welfare.
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The four labour codes enforced in November are suitable for the present nature of employment as well as the kind of economic growth happening in the country, a senior official said on Friday. Addressing the National Logistics Summit 3.0 organised by PHDCCI, Union Labour Secretary Vandana Gurnani termed the new labour codes as a game-changer for a dynamic economy. The complexities and the outdated laws have been done away with, and rules are now being streamlined into four codes enacted in 2019-20 and activated from November 21, 2025, she pointed out. She said, "These codes are now fit for purpose in terms of what the current nature of employment is, and the significant economic growth India is witnessing." Gurnani mentioned about easing of various compliance norms, including the reduction in the number of registrations from 8 to one, 31 returns to one, and 87 registers to eight. She emphasised that the new codes will ensure minimum wages, mandatory appointment letters, and enhance
Labour Minister Mansukh Mandaviya on Thursday dismissed concerns that the recently enforced labour codes would encourage hire & fire and inspector raj, and said the new laws will formalise employment while inspectors will be facilitators. Under the new codes, government permission is not required for layoff, retrenchment and closure of units with workers' strength of up to 300. Earlier, units with up to 100 workers did not require such permission. Addressing the Times Network India Economic Conclave, Mandaviya said, "We have formalised employment in the country with increasing the number of workers to 300 per unit, which was earlier 100." Earlier employers used to provide formal employment to 100 workers to avoid legal hassles and the rest were employed informally, he said. He said new codes have formalised employment of the left-out workers and they will get all benefits that an enrolled employee gets. On concerns about encouraging inspector raj by increasing compliance burden, .
Kerala Labour Minister V Sivankutty on Thursday made it clear that the Centre's Labour Codes would not be implemented in the state. Speaking to reporters here, Sivankutty said that the majority of the states have taken steps to implement the labour codes, but not Kerala. The minister further said that the Union Labour Ministry had called a meeting of all the states last month and there, Kerala had clearly indicated its stand that it would not implement the labour codes. When reporters asked whether the state succumbed to central pressure to prepare the draft regulations linked to the labour codes, he denied it. "If we were succumbing to central government pressure, we would have given a letter accepting the codes. we have not done that," he said. The draft regulation was notified in the state on December 14, 2021. He also asserted that the draft regulations were not prepared in secret. "It was done openly and I recommended in the file that public opinion be sought regarding it.