New Labour Codes Come Into Force, Expanding Welfare and Protection for Organised and Unorganised Workers

TFP Bureau, New Delhi, December 8, 2025: In a major policy milestone aimed at strengthening the rights, welfare and social protection of India’s workforce, the four Labour Codes—Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and Occupational Safety, Health and Working Conditions Code (2020)—officially came into effect on November 21, 2025. These comprehensive reforms consolidate and rationalise 29 central labour laws, creating a simplified and modern framework for wages, social security, workplace safety and industrial relations.

Officials said the enforcement of the Labour Codes marks a transformative shift for workers across both organised and unorganised sectors. Key reforms include the mandatory issuance of appointment letters to all employees, provision of universal minimum wages across the country, and the extension of social security benefits to gig workers, platform workers and interstate migrant labourers—segments that previously remained largely uncovered.

The Codes mandate annual free health check-ups for workers and significantly expand opportunities for women to work across sectors, including during night shifts, subject to adequate safety measures by employers. The Occupational Safety, Health and Working Conditions Code introduces comprehensive norms for improving workplace conditions, while the Industrial Relations Code provides for a reskilling fund for workers who are retrenched, ensuring support during transition into new employment.

The government has also introduced updated rules, regulations and safety standards for high-risk sectors such as construction, manufacturing and mining. Regular inspections are being conducted to monitor compliance with these provisions. In cases where violations are detected, authorities are empowered to impose stringent penalties, including fines and imprisonment, reinforcing the commitment to safer and fairer workplaces.

Alongside the rollout of the Labour Codes, the Ministry of Labour and Employment recently hosted a two-day National Conference of Labour & Employment and Industry Ministers and Secretaries from States and Union Territories on November 11–12, 2025. During the conference, the government presented the draft ‘Shram Shakti NITI’—India’s proposed National Labour & Employment Policy. The vision document outlines long-term strategies to create an inclusive, fair and resilient labour ecosystem, supporting the country’s goal of becoming a developed nation (Viksit Bharat) by 2047.

To boost employment, enhance skills and expand social security coverage, the government is also implementing the Pradhan Mantri Viksit Bharat Rozgar Yojana, one of the largest employment-support initiatives in recent years. With an approved financial outlay of Rs 99,446 crore, the scheme aims to incentivise the creation of over 3.5 crore jobs across sectors within the next two years, with special emphasis on the manufacturing sector. The programme seeks to encourage new hiring, improve formalisation of the workforce and expand benefits to a wider labour base.

These details were shared in the Lok Sabha by Minister of State for Labour and Employment, Sushri Shobha Karandlaje, in a written reply. The government stated that the combined effect of the Labour Codes, national policy initiatives and employment schemes will significantly strengthen worker welfare, industrial harmony and long-term economic growth.

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