The Four Labour Codes
- Code on Wages, 2019
- Establishes a national floor wage to ensure minimum pay across states
- Mandates equal pay for equal work regardless of gender
- Simplifies wage definitions and ensures timely payment
- Industrial Relations Code, 2020
- Streamlines rules for trade unions, hiring/firing, and dispute resolution
- Introduces flexibility for employers while safeguarding workers’ rights
- Aims to reduce industrial disputes and promote smoother relations
- Code on Social Security, 2020
- Extends social security coverage to gig and platform workers
- Expands benefits like pensions, maternity, and disability support
- Creates a more inclusive welfare net for India’s diverse workforce
- Occupational Safety, Health and Working Conditions Code, 2020
- Standardizes working hours (48-hour workweek) and safety norms
- Improves workplace health and welfare facilities
- Applies to factories, mines, plantations, and other sectors
Key Changes in 2025
- Gratuity Eligibility Reduced: Fixed Term Employees (FTEs) now qualify for gratuity after just one year (earlier five years)
- Work-from-Home Provisions: Recognized formally under the new framework, reflecting modern workplace realities
- National Contractor License: Introduced to regulate contract labour uniformly across India
- Simplified Compliance: Businesses now follow a single, streamlined framework instead of navigating 29 separate laws
Impact
- For Workers: Better wages, faster gratuity, wider social security, safer workplaces, and gender equality protections
- For Employers: Reduced compliance burden, more flexibility in hiring, and clearer dispute resolution mechanisms
- For Economy: Aligns India’s labour ecosystem with global standards, supporting Aatmanirbhar Bharat and sustainable growth
- In summary: The 2025 labour law changes are the biggest reform since Independence, creating a future-ready workforce framework that protects employees while enabling industries to grow.
Would you like me to create a comparison table of “Before vs After 2025 Labour Codes” so you can clearly see how workers and employers are affected?
Good returns
New Labour Laws Gratuity: Big Changes, 48-Hour Workweek, One-Year Eligibility, National Contractor License.
Here’s a clear comparison table showing how India’s labour laws changed after the implementation of the 2025 Labour Codes.
- Comparison: Before vs After 2025 Labour Codes
| Aspect | Before 2025 (Old Labour Laws) | After 2025 (New Labour Codes) |
|---|---|---|
| Number of Laws | 29 separate central labour laws | Consolidated into 4 Labour Codes |
| Wages | Minimum wages varied by state, complex definitions | National floor wage introduced; simplified wage definition; equal pay for equal work |
| Gratuity | Eligible only after 5 years of continuous service | Fixed Term Employees eligible after 1 year |
| Working Hours | Varied across industries; often unclear | Standardized 48-hour workweek across sectors |
| Work-from-Home | No formal recognition | Officially recognized under new framework |
| Contract Labour | Multiple state-level licenses required | Single national contractor license introduced |
| Social Security | Limited to formal sector employees | Extended to gig workers, platform workers, and informal sector |
| Industrial Relations | Complex rules for unions and disputes | Simplified rules; easier dispute resolution; more flexibility in hiring/firing |
| Compliance | Heavy paperwork, overlapping laws | Streamlined compliance under unified codes |
| Occupational Safety | Different standards across industries | Uniform safety, health, and welfare norms across all workplaces |
Key Takeaway
The 2025 Labour Codes mark a historic simplification of India’s labour framework. Workers benefit from better wages, faster gratuity, social security, and safer workplaces, while employers gain ease of compliance and flexibility.
