BS EDIT: India’s Labour Codes Come Into Effect

By Business StandardPublished On Nov 24, 2025

Why It Matters

India activates four labour codes, replacing old laws and setting the stage for a more modern and efficient labour market

Impact on Employers

Firms get simpler compliance and more hiring flexibility. Layoff and closure thresholds rise from 100 to 300 workers

Benefits for Workers

Minimum wage rights, timely pay and mandatory appointment letters improve transparency. Gig workers gain legal recognition

States Push Reforms

Sixteen states made wide labour changes this year, from night shifts for women to higher overtime limits

MSME Challenges

Social security rules may raise costs for smaller firms, though lower compliance burdens could balance the impact

What’s Next

Revised rules and a new labour policy will guide the shift toward formalisation and a more adaptable labour market