Big Changes in Labor Laws. Top 10 Highlights of the New Labour Law Reforms in India wef 21 Nov 2025
Top 10 Highlights of the New Labour in India Consolidation of 29 Labor Laws Laws into 4 Codes
Code on Wages (2019)**
Industrial Relations Code (2020)**
Code on Social Security (2020)**
1.Occupational Safety, Health and Working Conditions (OSHWC) Code (2020)
This simplifies and modernizes a fragmented and overlapping regulatory framework.The Economic Times
2.Universal Minimum Wage & National Floor Wage
There is now a national floor wage** — states cannot set minimum wages below this, which ensures a baseline standard across India.
* Minimum wages are now more uniformly applicable, covering organized and unorganized sectors.
3. Revised Definition of Wages
* The definition of “wages” has been tightened: at least **50% of total compensation** must be “wages” (basic pay + dearness allowance + certain other fixed components).
* This is important because many benefits (like PF, gratuity) are calculated on “wages.” With a higher base, contributions & payouts may rise.
4. **Fixed-Term Employment Gets Parity**
* Fixed-term employees (hired for a defined period) will get **the same benefits** (leave, social security, medical) as permanent employees.
*Gratuity eligibility for fixed-term employees has been reduced: they become eligible **after 1 year**, instead of 5 years earlier.
5.Gig & Platform Workers Legally Recognised**
* For the first time, **gig workers** and platform workers (like delivery riders, drivers) are legally defined.
* Aggregators (platform companies) are required to contribute 1-2% of their turnover (capped at 5% of payouts) to a social security fund.
* They’ll have **portable social security accounts**, linked via Aadhaar, so benefits can carry across states.
6. Mandatory Appointment Letters
Employers must issue formal appointment letters to all workers, specifying role, wages, social security, etc.
* This brings more transparency and formalization to employment, especially in sectors with precarious or informal hiring.
7. Flexible Working Hours & Overtime
* Normal hours: up to **8 hours/day and 48 hours/week
* Overtime is allowed (with worker consent) and must be compensated at double the normal rate
* These rules give more flexibility to both workers and employers.
8. Safety, Health & Working Conditions Strengthened
* There will be **free annual health check-ups for workers (e.g., those above 40 years) under the OSHWC Code.
* Establishments with 500 or more workers** must form safety committees to oversee health & safety.
* A national OSH board** will set uniform safety standards.
9. Women’s Rights, Night Shifts & Equal Pay
* Women are allowed to work night shifts(before 6 AM or after 7 PM), subject to their consent and adequate safety measures.
* The codes explicitly mandate equal pay for equal work, Irrespective of gender (or even including transgender persons).
* There’s also a push for mandatory representation of women in workplace grievance committees.
10. Streamlined Compliance & Dispute Resolution
* There will be single registration, single licence, and *Single Return Filing for employers
* Introduction of an Inspector-cum-facilitator model. Inspectors will guide and advise rather than just punish.
* Industrial disputes will be resolved faster through **two-member industrial tribunals, reducing backlog and delays.
Why These Reforms Matter
Formalisation: Many workers in India’s informal/gig economy get more legal protection now.
Worker Welfare: Stronger safety, guaranteed wages, and social security improve long-term well-being.
Ease of Doing Busines: For employers, compliance is simplified, which could boost investment.
Gender Inclusion: By allowing night shifts and ensuring equal pay, more women can participate in a broader range of jobs.
