New Labour Codes 2025 : Know the Key Changes in Labour Law

• 22 Nov 2025
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As per the provisions of four labour codes that became effective on 21 November 2025, all the fixed-term employees will become eligible for gratuity payments after one year of continuous services, instead of five years earlier, and a national minimum wage will cover all the workers instead of a few scheduled industries.

The Union government announced the four labor codes that were passed by Parliament during 2019-20. The necessary rules to make them operational were announced on 21 November 2025. This was revealed by Union Labour Minister Mansukh Mandaviya during a briefing for reporters. One of the significant updates is the formal definition of gig and platform work for the first time. 

According to Section 2(35) of the Code on Social Security, 2020, a gig worker is defined as “a person who participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship”. Key changes introduced include the requirement for employers in all sectors to provide free annual medical check-ups for workers aged 40 and above, promoting preventive healthcare. Additionally, no worker can be hired without receiving a written appointment letter. 

Fixed-term employees will now receive the same benefits as permanent staff, which include leave, regulated working hours, and medical benefits. Furthermore, the new codes mandate that all companies must pay salaries on time, with IT firms specifically required to release salaries by the 7th of every month.

During 2019-20, Parliament passed several important reforms, including The Code on Wages, 2019; the Industrial Relations Code, 2020; the Occupational Safety, Health and Working Conditions (OSH) Code, 2020; and the Code on Social Security, 2020. These new codes replaced a set of 29 outdated laws, and they became effective on 21 November 2025 after being delayed multiple times. 

All in all, these reforms provide companies with greater freedom to hire and fire workers, introduce new safety standards and expand social security benefits. Notably, the new regulations permit women to work night shifts and to enter industries classified as “hazardous” such as mining. This aligns with the goal of government to increase the participation of women in workforce. However, the provisions stipulate that women can only take on these roles with their consent and after appropriate safety measures have been implemented.

“The labour codes promote employment opportunities for women and are gender neutral,” Union labour minister Mansukh Mandaviya said on 21 November 2025. For establishments with at least one employee engaged in hazardous processes, the enrollment in the Employees’ State Insurance Corporation has been made compulsory. 

Source: Hindustan Times