PDF TitleNew Labour Codes 2025 – What You Need to Know
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Posted By Admin
Posted On Nov 26, 2025
New Labour Codes 2025 - What You Need to KnowNew Labour Codes 2025 - What You Need to Know

New Labour Codes 2025 – What You Need to Know

New Labour Codes 2025: Complete Guide for Workers, Youth & Employers

The Government of India has officially implemented the four New Labour Codes, replacing 29 existing labour laws. These changes aim to simplify labour regulations, improve social security, and create a modern, worker-friendly framework for India’s growing economy.

This guide explains the key changes, benefits, and what different groups must know — including youth, women, gig workers, employees, and employers.

1. What Are the New Labour Codes?

The government has consolidated 29 labour laws into four major codes:

  1. Code on Wages
  2. Industrial Relations Code
  3. Social Security Code
  4. Occupational Safety, Health & Working Conditions Code

These codes aim to create a simplified, transparent, and unified system for both workers and employers.

2. Key Changes You Must Know

1. Higher Take-Home PF & Social Security

  • PF, pension, and gratuity benefits become stronger.
  • PF contribution is linked to a standardised definition of wages (basic salary + allowances).

2. Working Hours May Change

  • Daily shift can be 12 hours, but weekly limit remains 48 hours.
  • Flexible working hours, compressed work weeks allowed (e.g., 4-day week).

3. More Paid Leaves

  • Every worker must receive an appointment letter.
  • Mandatory annual health check-ups for certain workers.
  • Maternity benefits and safety laws strengthened for women.

4. Gig & Platform Workers Legally Recognised

For the first time in India:

  • Gig workers (Zomato, Swiggy, Uber, Ola, freelancers) receive legal recognition.
  • Platforms must contribute 1–2% of their turnover to a Social Security Fund.
  • Workers become eligible for:
    • Life insurance
    • Accident insurance
    • Disability benefits
    • PF-like support
    • Healthcare schemes

5. Easier Hiring & Firing Rules for Companies

  • Firms with up to 300 workers can lay off employees without prior government approval.
  • Fixed-term employment becomes easier.

6. Mandatory Appointment Letter for Every Employee

This applies to:

  • Full-time
  • Contract
  • Temporary
  • Fixed-term
  • Gig and platform workers
    This ensures transparency and protection.

3. Benefits for Youth

The new codes aim to support young professionals by:

  • Increasing job opportunities
  • Protecting interns, apprentices, and gig workers
  • Improving working conditions
  • Offering stronger safety and social security benefits

4. Benefits for Women

  • Safer workplaces
  • Stronger maternity benefits
  • Night shifts allowed with safety protocols
  • Equal pay and non-discrimination mandated

5. What Employers Need to Know

  • Wages must follow the standard wage definition
  • PF/ESI compliance is mandatory
  • Appointment letters must be issued
  • Safety and health standards upgraded
  • Social security contribution required for gig workers

6. Why the Labour Codes Matter

The reforms are among the biggest changes in India’s labour system since Independence.
They aim to:

  • Strengthen social security
  • Modernise labour laws
  • Support the digital and gig economy
  • Create transparency for employers

Despite this, labour unions have raised concerns about reduced worker protection and clarity — making accurate, simple guides necessary.

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