Overview
- The government made four consolidated labour codes effective on November 21, replacing 29 central laws across wages, social security, industrial relations and workplace safety.
- A 45‑day stakeholder feedback window on draft rules has opened, with state rulemaking pivotal and some states raising objections or declining to implement the framework, including Kerala.
- Employers are recalculating liabilities under the unified definition of “wages,” which can increase PF, ESI, gratuity and bonus outgo when allowances exceed 50% of pay, and must complete full‑and‑final settlements within two days of exit.
- Key changes include gratuity eligibility after one year for fixed‑term employees, legal recognition of gig and platform workers with a proposed welfare fund funded by 1–2% of aggregator turnover, and restrictions on using contract labour in core activities.
- The Industrial Relations Code lifts the threshold for prior approval of layoffs and closures to establishments with over 300 workers and mandates 14 days’ strike notice, positions welcomed by many industry groups and opposed by most central trade unions.