Govt ushers in major reforms, notifies 4 labour Codes; mandates social security for gig workers

Marking a landmark reform in labour legislation, the government on Friday (November 21) notified all four Labour Codes, introducing sweeping changes bringing in universal social security for gig workers, ensuring compulsory appointment letters for all employees, and statutory minimum wages with assured timely payment across sectors.

The four Labour Codes — the Code of Wages (2019, Industrial Relations Code (2020), Code on Social Security (2020) and Occupational Safety, Health and Working Conditions Code (2020) — effective Friday, replace 29 fragmented laws with a unified, modern framework.

Benefits of reforms

The reforms include expanded rights and safety for women, including night-shift work, free annual health check-ups for workers aged over 40 years, pan-India ESIC coverage including hazardous process units, and a single registration, licence and return system.

These Codes, Prime Minister Narendra Modi said in a series of social media posts on X, "Will serve as a strong foundation for universal social security, minimum and timely payment of wages, safe workplaces and remunerative opportunities for our people, especially Nari Shakti and Yuva Shakti...

"It will build a future-ready ecosystem that protects the rights of workers and strengthens India's economic growth. These reforms will boost job creation, drive productivity and accelerate our journey towards a Viksit Bharat."

Also read: Five states not ready with draft rule on Labour Codes: Minister

Modi further said that "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 Doing Business'." According to Labour Minister Mansukh Mandaviya, the labour Codes will formalise employment, strengthen worker protections, and make the labour ecosystem simpler, safer and globally aligned.

Additional systemic reforms include a national floor wage, gender-neutral work policies, the Inspector-cum-Facilitator model for supportive compliance, faster dispute resolution through two-member tribunals, and a National Occupational Safety, Health (OSH) Board to harmonise safety standards.

Next transformative step

The government will now initiate consultations to frame detailed rules and schemes.

During the transition, provisions of existing labour laws will remain applicable wherever required.

The social-security coverage had expanded from 19 per cent in 2015 to over 64 per cent in 2025. The enforcement of the Labour Codes marks the next transformative step -- broadening worker protections, easing business operations and promoting a pro-worker labour ecosystem.

Aatmanirbhar Bharat

According to a labour ministry statement, the Codes lay the foundation for Aatmanirbhar Bharat.

India's labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different.

Also read: How India's constitutional order is eroding under dharma-driven policies

Labour Minister Mandaviya said on X, "Modi Government’s Guarantee: Dignity for Every Worker! From today, the new labour codes have been made effective in the country." The minister said the codes will guarantee minimum wages for all workers, appointment letters for the youth, equal pay and respect for women, social security for 40 crore workers, gratuity for fixed-term employees after one year of employment, free annual health check-ups for workers above 40 years of age, double wages for overtime, 100 per cent health security for workers in hazardous sectors and social justice for workers as per international standards.

"These reforms are not just ordinary changes, but a major step taken by Prime Minister Shri Narendra Modi for the welfare of the workforce. These new labour reforms are an important step towards a self-reliant India and will give new momentum to the goal of a developed India by 2047," he said on X.

Under the Code on Social Security, 2020, all workers, including gig & platform workers, will be covered by social security. All workers will get PF, ESIC, insurance, and other social security benefits.

Under the Code on Wages, 2019, all workers will receive a statutory minimum wage payment. Minimum wages and timely payment will ensure financial security.

The ESIC coverage and benefits are extended Pan-India -- voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes.

Now, Fixed-Term Employees (FTE) will receive all benefits equal to those of permanent workers, including leave, medical, and social security.

The Codes have defined 'Gig work’, ‘Platform work’, and ‘Aggregators’ for the first time.

Aadhaar-linked Universal Account Number will make welfare benefits easy to access, fully portable, and available across states, regardless of migration.

Plantation workers will be brought under the OSHWC Code and the Social Security Code.

Digital and audiovisual workers, including journalists in electronic media, dubbing artists, and stunt performers, will now be entitled to full benefits.

(With inputs from agencies)