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India Puts Four Labour Codes Into Force, Replacing 29 Laws

Implementation now shifts to detailed central and state rulemaking that will decide how the new protections function.

Overview

  • Effective November 21, the Codes on Wages, Social Security, Industrial Relations, and OSH unify India’s labour framework and extend statutory minimum wages through a national floor wage to all employees.
  • Gig and platform workers gain legal recognition under social security with aggregator contributions of 1–2% of turnover, ESIC coverage becomes pan‑India including single‑worker hazardous units, and EPFO coverage applies to establishments with 20 or more employees.
  • Fixed‑term staff receive parity with permanent workers and become eligible for gratuity after one year, while the threshold for prior approval of layoffs, retrenchment and closure rises to 300 workers alongside stricter strike‑notice requirements and a sole negotiating union at 51% membership.
  • Workplace norms mandate appointment letters, an eight‑hour day and 48‑hour week with double‑rate overtime, allow women to work night shifts with consent and safety measures, and require annual health checks and safety committees in larger establishments.
  • A tighter wage definition requiring at least 50% of pay as basic may lift PF and gratuity outlays and trim take‑home salaries, as employers rework payrolls and authorities prepare digital inspections amid union concerns over hire‑and‑fire flexibility and strike curbs.