New Delhi: The central government on Thursday implemented four new Labour Codes across the country, consolidating 29 old labour laws. The Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, and Occupational Safety, Health and Working Conditions Code 2020, effective from November 21, 2025, will bring significant changes for approximately 500 million workers in organized and unorganized sectors.
Appointment Letter Now Every Employee’s Right
According to the notification issued by the Labour Ministry, it is now legally mandatory for all employers to provide appointment letters to every employee. Previously, there was no such obligation, which meant workers especially in the unorganized sector had no written proof of their employment.
The scope of minimum wages has also become universal. Earlier applicable only to notified industries, now workers in every sector will have the legal right to receive minimum wages.
Social Security for Gig Workers for First Time
Gig and platform workers working on online platforms will receive legal definition and social security for the first time. Aggregator companies will have to spend 1-2% of their annual turnover, capped at 5% of the amount paid to these workers, on their welfare.
The Aadhaar-linked Universal Account Number system will make benefits portable for migrant workers across any state they work in.
Equal Opportunities for Women
Women will now be permitted to work night shifts and in all types of jobs, including underground mining and heavy machinery operations. However, this will only be possible with their consent and mandatory safety arrangements. Equal pay for equal work is now a legal right.
Major Relief for Fixed-Term Employees
Fixed-term employees will now receive all benefits equal to permanent workers—whether leave, medical facilities, or social security. For gratuity, just one year of service will be sufficient instead of five years.
Health Facilities for Contract Workers
Contract workers will receive health benefits and social security from the principal employer. All workers will get free annual health check-ups.
ESIC Coverage Expansion
ESIC coverage will now apply pan-India. It will be voluntary for companies with fewer than 10 employees, but for establishments engaged in hazardous processes, ESIC will be mandatory even with just one employee.
Special Rules for IT Sector
Information technology and ITES employees must receive their salaries by the 7th of every month. Double wages will be mandatory for overtime, which will only be possible with employee consent.
Single Compliance for Industries
Companies will now manage with just one registration, one pan-India license, and one return. Previously, multiple registrations and licenses had to be obtained under various laws.
According to the Ministry, social security coverage has increased from just 19% of workers in 2015 to over 64% in 2025.
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