New Labour Codes Implementation: A Major Step Toward Modernising India’s Workforce Framework
The implementation of India’s four Labour Codes- Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health & Working Conditions Code (2020)- marks one of the most significant labour reforms in the country’s history. Designed to replace and merge 29 existing labour laws, these Codes create a unified and simplified structure aimed at improving worker welfare, strengthening workplace protection, and easing compliance for businesses through standardised definitions and digital processes.
The Code on Wages, 2019 introduces a uniform wage system applicable to all establishments and employees. It brings in the national floor wage, ensures equal pay for equal work, regulates wage deductions, and mandates timely salary payments. By standardising the definition of wages across laws, it eliminates ambiguity and promotes consistency in implementation.
The Industrial Relations Code, 2020 focuses on fostering stable employer- employee relations. It lays down provisions for trade union regulation, dispute-resolution channels, negotiating unions or councils, and grievance redressal mechanisms. The Code also details rules regarding layoffs, retrenchment, and closures, offering clarity and predictability for both employers and workers.
The Code on Social Security, 2020 creates an integrated framework covering EPF, ESI, gratuity, maternity benefits, and welfare schemes. Importantly, it extends social security for the first time to gig workers, platform workers, and unorganised-sector workers, supported by national and state-level boards and simplified digital registration.
The OSHWC Code, 2020 consolidates 13 laws to ensure safer and healthier workplaces. Employers are made responsible for hazard prevention, safety training, health checks, and welfare facilities within a wide range of establishments.
On 21st November 2025, the Central Government officially activated major provisions of all four Labour Codes. These notifications complete a crucial step toward a modern, transparent, and unified labour law system designed to benefit India’s workforce and support a business-friendly environment.
How We Can Help
Impact Assessment
Through impact assessment, we let you understand how the new labour codes impact your workplace environment and management policies.
Transition Plan
At Kapgrow, our experts outline the modifications required to be made in HR policies through an effective transition plan.
Training & Presentations
Understand India’s labour law regime and employee rights by organising training and presentations at your workplace.
Complete Implementation Support
From interpreting to implementing the changes brought by the new labour codes, we are always available to share our support.
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