India's Four Labour Codes: What Changes for Employers

India's four Labour Codes consolidated 29 central labour laws and came into force from 21 November 2025. Central and state rules are being finalised in stages, so some details are still settling. This guide summarises the main changes for employers.

Code on Wages, 2019

• A uniform definition of wages across the Codes, with the 50% rule on excluded allowances.
• Minimum wages for all employees, with a national floor wage.
• Timely payment of wages, including within two working days on exit.
• Statutory bonus rules carried over.

Industrial Relations Code, 2020

• Fixed-term employment across sectors, with parity of benefits.
• Standing orders required for establishments with 300 or more workers.
• Government permission for layoffs, retrenchment and closure at 300 or more workers.
• A reskilling fund contribution on retrenchment.
• Notice requirements for strikes.

Code on Social Security, 2020

• PF, ESI, gratuity, maternity benefit and other schemes consolidated.
• Gratuity for fixed-term employees after one year.
• Social security for gig and platform workers, with aggregator contributions.
• Wider ESI coverage.

Occupational Safety, Health and Working Conditions Code, 2020

• Single registration for establishments.
• Appointment letters for employees.
• Working hours, overtime and leave rules.
• Women permitted to work at night with consent and safeguards.
• Annual health check-ups for some workers.

What Employers Should Do

1. Check salary structures against the wage definition.
2. Update appointment letters and fixed-term contracts.
3. Recalculate gratuity liabilities.
4. Review standing orders and HR policies.
5. Track central and state rules as they're notified.

Getting Help

Think Filing advises employers on the Labour Codes transition, from cost modelling to updated compliance.