A READINESS FRAMEWORK FOR EMPLOYERS
On 21 November 2025, the Government of India brought into effect the four labour codes:
The Code on Wages, 2019
The Code on Social Security, 2020
The Occupational Safety, Health & Working Conditions (OSHWC) Code, 2020
The Industrial Relations (IR) Code, 2020
These codes consolidate 29 existing labour legislations, and aim to simplify compliance, extend social security coverage, and modernise employment regulations for both organised and unorganised sectors.
KEY CHANGES
Wages Overhauled: Wage must be at least 50% of total pay — reshaping take-home and Gratuity.
Gig Workers Protected: Social security now covers digital and informal workers.
1-Year Gratuity Rule: Fixed-term employees and Gig workers now qualify faster — boosting inclusion.
Safer Workplaces: Health and safety laws tightened, with easier compliance.
Flexible Scaling: Simplified industrial relations with stronger employee safeguards.
WHAT SHOULD EMPLOYERS EXPECT?
This shift goes beyond compliance. It encourages organisations to build more transparent, equitable, and agile workplaces. As India enters this new regulatory era, businesses have an opportunity to not only align, but to lead with confidence. It is therefore critical for organisations to evaluate the implications comprehensively and prepare for a seamless transition to maintain compliance and operational efficiency.
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