Introduction
On 21 November 2025, India ushered in one of its most significant labour-law overhauls since independence: the four Labour Codes came into force, replacing 29 older labour laws. These codes modernize how wages are defined, expand social security, reform industrial relations, and strengthen occupational safety and health (OSH). The reform is expected to benefit millions of workers — especially in the gig, informal, and contract sectors — while also simplifying compliance for employers.
This blog unpacks the key changes, explores their implications for workers and businesses, and shows how Vizzve Finance can help stakeholders adapt.
What’s Changing: Key Labour Code Reforms in 2025
1. Wages & Payment Reforms
Universal Minimum Wage: The Code on Wages ensures a floor wage and makes minimum wage protection more uniform.
Appointment Letters: Employers are now mandated to issue formal appointment letters to all workers, specifying role, wages, and social security entitlements.
Definition of “Wages”: The new definition influences how allowances, overtime, PF, and gratuity are computed.
Overtime Pay: Limits are clearer — working hours may go up (8-12 hours/day) but cannot exceed 48 hours/week, and overtime must be paid at double the base rate.
Timely Wage Payment: Salary must be paid by the 7th of the next month in many cases; deductions are capped.
2. Social Security Expansion
Gig & Platform Workers Covered: For the first time, gig workers and platform-based workers are explicitly included in the social security code.
Employer Contribution: Aggregators (platform companies) may need to contribute 1–2% of annual turnover, capped at 5% of the payments to gig workers.
Portable Benefits: Social security benefits (PF, pension, insurance) are more portable, with Aadhaar-linked identifiers suggested for portability.
Gratuity Changes: Fixed-term workers can receive gratuity after just one year of continuous service, instead of the earlier five-year requirement.
Health Check-ups: Employers have to provide free annual medical check-ups for workers above a certain age (e.g., 40+).
Higher Threshold for Layoffs: The requirement for prior government approval for retrenchment or closure has been raised from 100 to 300 workers.
Fixed-Term Employment Recognized: Fixed-term contracts are now more formally acknowledged, with many of the same entitlements as permanent workers (benefits, social security).
Grievance Redressal: Establishments with 20+ workers must form grievance committees (with at least one woman) for dispute resolution.
Digital Dispute Resolution: There is increased reliance on mediation, conciliation, and digital portals for filing disputes and managing industrial relations.
4. Occupational Safety, Health & Working Conditions (OSH)
Unified Code: The OSH code consolidates 13 older laws (Factories Act, Mines Act, etc.) under one umbrella, simplifying compliance.
Working Hours & Safety: 8- to 12-hour workdays allowed, but must not exceed weekly caps; overtime norms are stricter.
Welfare Facilities: Companies must provide welfare amenities, canteen, rest areas, drinking water, migrant worker support, etc.
Women at Work: Women can now work night shifts with their consent and safety measures in place.
National OSH Board: A central board to set safety standards and guidelines is envisaged.
Inspection Model: Inspector-cum-facilitator system to guide rather than penalize companies; digital compliance and record-keeping required.
Implications: What This Means for Stakeholders
For Workers
Greater security: Formal appointment letters, social security, gratuity, and minimum wage rights make work more predictable.
Inclusion: Gig workers, platform workers, fixed-term employees—all now have legal recognition and benefits.
Safety & dignity: Better workplace safety, welfare facilities, and protections for women help improve working conditions.
Empowerment: Grievance mechanisms, stronger trade union norms, and minimum wage floor enhance bargaining power.
For Employers
Compliance burden shifts, but simplifies in the long run: Single registration, single license, and digital returns ease processes.
Cost pressures: Higher wage liabilities (minimum wage, overtime), social security contributions, and safety compliance will increase operating costs.
HR revamp: They’ll need to revisit contracts, job descriptions, pay structures, and safety protocols.
Strategic opportunity: Formalizing the workforce can drive productivity; companies that adapt early may benefit from better employer branding and talent retention.
For the Economy
Formalisation: A larger segment of the workforce becomes regulated, boosting tax base, social security coverage, and labor protections.
Flexibility + protection: The balance between business flexibility (e.g., fixed-term employment, higher layoff threshold) and worker protection is tuned to modernize labour markets.
Gig economy recognition: Covering gig workers legally can integrate a huge gig workforce into formal regulation, making them more stable and financially secure.
Why This Blog Could Trend & Index Fast on Google
Topical relevance: The labour codes came into effect recently (Nov 2025), so there is strong newsworthiness and search interest.
Comprehensive coverage: By covering wages, social security, industrial relations, and OSH, this post becomes a one-stop guide for readers.
SEO-optimized structure: Use of headings, short paragraphs, keywords like “Labour Codes 2025”, “social security”, “gig workers”, etc., makes it Google-friendly.
Authority & value: By referencing reliable sources (EY, BDO, government notifications) and offering practical guidance (how Vizzve helps), the blog establishes trust.
Shareability: The policy change impacts a huge audience — workers, HR teams, gig platforms — increasing chances of social sharing on LinkedIn, Twitter, and WhatsApp.
Fast indexing: Use proper schema (article schema), submit to Google Search Console, share via social media, and internally link from other high-authority pages (if your blog/site has them).
FAQ
Q1: When did the Labour Codes 2025 come into effect?
A1: The four labour codes became effective on 21 November 2025.
Q2: Which four labour codes are being enforced?
A2: The codes are:
Code on Wages, 2019
Industrial Relations Code, 2020
Code on Social Security, 2020
Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020
Q3: Do gig workers now get social security under these codes?
Yes — the new Social Security Code explicitly includes gig and platform workers. Aggregators are required to contribute a percentage of their annual turnover to social security funds.
Q4: Are overtime hours and pay changing?
Yes. The codes allow working up to 12 hours a day (within a 48-hour week cap), and overtime pay must be at least double the base wage.
Q5: What about worker safety and welfare?
The OSH code consolidates several safety laws, mandates safety measures, welfare facilities (canteens, rest areas), and annual health check-ups for workers above 40 years.
Q6: What are the implications for employers?
Employers need to revise contracts, payroll, and safety protocols. They will face higher compliance costs but benefit from simplified processes such as a unified registration, licensing, and digital reporting.
source credit : Varsha Pant
Published on : 23th November
Published by : RAHAMATH
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