4 New Labour Codes Are Rolling Out Across India But Are They Worker-Friendly? Deets Inside!

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If you've worked a job without proper paperwork, dealt with delayed salaries, or seen gig workers struggle without basic protection, things are finally changing. India has brought in four new labour codes that replace a long list of older laws. These changes affect more than 40 crore workers, that is people working in offices, factories, shops, and even through apps. This update reshapes how work, wages, safety, and benefits are handled across the country. Here's what's new and how it affects you.

Photo Credit: Oneindia

Appointment Letters For Everyone

Every worker must now get a formal appointment letter. No more joining a job with only verbal promises or vague job roles.

A Real Minimum Wage And Timely Payments

The new codes introduce a nationwide minimum floor wage, ensuring a basic earning level everywhere. Employers are also legally required to pay salaries on time, no indefinite delays.

Shramev Jayate!

Today, our Government has given effect to the Four Labour Codes. It is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers. It also significantly simplifies compliance and promotes ‘Ease of…

— Narendra Modi (@narendramodi) November 21, 2025

Gratuity After One Year

Fixed-term workers now qualify for gratuity after just one year of service, instead of the earlier five-year requirement. This gives contract workers meaningful financial security.

Social Security For Gig And Platform Workers

Delivery partners, app-based drivers, freelancers working through platforms, all of them are finally part of the social security net. Companies must now contribute to their welfare funds, opening access to insurance, pension, and other schemes. Informal workers are also covered more broadly under the new framework.

Better Protections For Women

Equal pay isn't just a principle, it's now legally enforced across all sectors. Women can also work night shifts with mandatory safety measures and transport support.

Free Health Check-Ups After 40

Workers aged 40 and above must receive a free annual health check-up from their employers, encouraging preventive healthcare at the workplace.

Smoother Compliance For Employers

Employers now follow a simpler system: one registration, one licence, one annual return. Inspections are more transparent and designed to help businesses comply rather than fear sudden raids.

Updated Layoff Rules

Companies with over 300 workers need government approval before layoffs. For smaller firms, the process is more flexible, giving them room to manage during difficult periods.

Why Some Groups Are Raising Concerns

Several central trade unions have criticised the new labour codes, calling the government's move "blatantly unilateral," "anti‑worker," and "pro‑employer" accusing the government of rushing the reforms without proper consultation. One major concern is the increased threshold for mandatory government approval for layoffs, which has gone up from 100 to 300 employees, unions fear this gives companies too much flexibility and could reduce job security.

Statement by the Joint Platform of Central Trade Unions on the labour codes notification pic.twitter.com/30xQuBzUfe

— CPI (M) (@cpimspeak) November 21, 2025

Critics also warn that collective bargaining power may be weakened, smaller unions could find it harder to represent workers effectively, and the right to strike may face new restrictions. There are additional worries that worker protections, grievance mechanisms, and workplace safety could be diluted under the guise of modernisation, leaving gaps in enforcement despite the ambitious reforms.

Photo Credit: Oneindia

The new labour codes aim to organise India's work environment by protecting workers while simplifying compliance for employers. They provide long-overdue clarity for full-time, contract, and app-based workers, and introduce stronger safeguards across industries.

At the same time, the criticism from unions highlights that these reforms will only succeed if implemented carefully. Job security, collective bargaining, and workplace safety must be actively monitored to ensure the codes deliver on their promises. The reforms mark a significant step in modernising India's labour system, but the real test will be how effectively states and employers translate these rules into practice on the ground.