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Introduction
India's labour law reforms entered a significant phase with the enforcement of the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively, the “Labour Codes”) from November 21, 2025. Although the Labour Codes came into force in November 2025, their implementation remained incomplete in the absence of the corresponding subordinate legislation. This changed when the Ministry of Labour and Employment notified the Central Rules (“Rules”) under all four Labour Codes through notifications issued in the Official Gazette on May 8, 2026. The notification of these Rules marks the transition from legislative reform to operational compliance.
Applicability of the Central Rules
The Rules do not apply universally to all establishments. Their applicability depends upon whether the Central Government is the “appropriate government” under the relevant Labour Code. For establishments where the State Government is the appropriate government, the relevant State Rules framed under the Labour Codes will govern compliance obligations. Consequently, employers must determine the identity of the appropriate government before assessing their obligations under the Labour Codes.
Key Highlights under the Code on Wages (Central) Rules, 2026
The Code on Wages (Central) Rules, 2026 (“CW Rules”) establish several operational requirements concerning wages, working hours and deductions. The CW Rules provide for a standard working week of 48 (forty-eight) hours, with overtime becoming payable where employees work beyond the prescribed normal working hours. Overtime wages must be paid at not less than twice the normal rate of wages.
As per the CW Rules, employees are entitled to a weekly day of rest, ordinarily falling on Sunday in the case of a six-day working week and Saturday and Sunday in the case of a five-day working week. However, the employer may fix any other day as notified in advance. While employees may be required to work on their designated weekly day of rest in specified circumstances, they must be granted a substituted day of rest, and employees cannot be required to work continuously for 10 (ten) days without adequate weekly rest. Under the CW Rules, employers are also required to maintain prescribed records and registers, including the Employee Register, Register of Wages, Overtime, Advances, Fines and Deductions for Damage and Loss, and Attendance Register-cum-Muster Roll, in the prescribed forms and manner.
From a compliance perspective, the CW Rules also provide for electronic filing of returns in the manner and form prescribed under the Occupational Safety, Health and Working Conditions Rules, thereby helping to reduce duplication in statutory filings.
Key Highlights under the Social Security (Central) Rules, 2026
The Social Security (Central) Rules, 2026 (“SS Rules”) consolidate various aspects relating to provident fund, employees’ state insurance, gratuity, maternity benefits, crèche facilities and social security for gig and platform workers. One of the notable clarifications concerns gratuity for fixed-term employees. Such employees become eligible for gratuity upon rendering service under the contract for at least 1 (one) year, with the applicable period of service thereafter determined in accordance with the prescribed rules for computation of gratuity.
The SS Rules also permit an employer to apply for the provisions relating to the Employees’ Provident Fund or Employees’ State Insurance to be made inapplicable to the establishment after completion of 5 (five) years of coverage, subject to a written agreement with the majority of employees and fulfilment of prescribed compliance conditions.
Another significant compliance obligation relates to workplace crèches. Establishments where 50 (fifty) or more employees are ordinarily employed are required to provide and maintain a crèche for children under 6 (six) years of age. The crèche is generally required to be located within 1 (one) kilometre of the establishment, subject to specified relaxations. Eligible employees may instead be provided with a crèche allowance where the crèche facility is not provided, subject to the prescribed conditions.
The SS Rules also operationalise the social security framework for gig and platform workers by requiring aggregators to furnish details of engaged workers through the designated government portal within prescribed timelines and by additionally prescribing circumstances under which registered gig and platform workers cease to remain eligible for social security benefits. They also provide greater clarity on maternity benefits by specifying the duration of nursing breaks available to eligible women employees and require employers to maintain the prescribed Register of Women Employees in Form XXII.
Key Highlights under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026
The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (“OSH Rules”) introduce extensive compliance obligations relating to registration, workplace safety, employment conditions and maintenance of records. Registration of establishments has been digitised through the Shram Suvidha Portal in Form I. Where a complete application is submitted, registration is deemed to have been granted if no action is taken by the authorities within 7 (seven) days, and the registration certificate is auto-generated in Form III. Existing establishments registered under earlier Central labour laws are also required to update their registration particulars in Form I within the prescribed six-month period.
The OSH Rules prescribe a standard limit of 48 (forty-eight) working hours per week and require overtime wages at twice the ordinary rate where the prescribed limits are exceeded. They also cap overtime at 144 (one hundred and forty-four) hours in a quarter. Women may be employed before 6:00 a.m. or beyond 7:00 p.m., subject to prescribed conditions, including obtaining prior written consent, providing safe transportation, ensuring workplace safety and security, and complying with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Establishments employing 500 (five hundred) or more workers are required to constitute a Safety Committee comprising representatives of employers and workers, with prescribed representation of women workers. The OSH Rules also prescribe mandatory annual health examinations for workers in specified sectors, require crèche facilities in specified establishments where more than 50 (fifty) workers are ordinarily employed, and provide for mobile crèches wherever required. For record-keeping purposes, the OSH Rules prescribe a Register of Accidents and Dangerous Occurrences, a Register of Leave with Wages, and an Annual Return in Form XVII, which is required to be furnished electronically in the prescribed manner. The Employee Register, Attendance Register-cum-Muster Roll, and Register of Wages, Overtime and Deductions are deemed to be maintained under the OSH Rules where the corresponding registers are already maintained under the CW Rules.
Key Highlights under the Industrial Relations (Central) Rules, 2026
The Industrial Relations (Central) Rules, 2026 (“IR Rules”) primarily focus on workplace dispute resolution, standing orders, retrenchment obligations and industrial relations procedures. Industrial establishments employing 20 (twenty) or more workers are required to constitute a Grievance Redressal Committee consisting of equal representation of employers and workers. The Rules prescribe the composition, tenure and procedural requirements for these committees.
The Rules also prescribe procedures relating to lock-outs, closure of establishments and retrenchment. Employers who retrench workers are required to contribute an amount equivalent to 15 (fifteen) days last drawn wages for each retrenched worker to the Worker Re-skilling Fund within 10 (ten) days of retrenchment.
Overall, the IR Rules strengthen the procedural framework governing industrial relations by prescribing specific requirements for grievance redressal, standing orders, retrenchment, closure and other industrial relations processes.
Practical Considerations for Employers
The Rules set out detailed compliance obligations for covered establishments while introducing greater digitisation and procedural standardisation. Employers should therefore undertake a comprehensive review of their existing labour law compliance framework. Areas requiring immediate attention include reviewing working-hour and overtime policies, wage deduction procedures, grievance redressal mechanisms and Safety Committees, where applicable; ensuring compliance with crèche requirements; ensuring electronic maintenance of prescribed statutory registers and wage records; reviewing standing orders, where applicable; and updating internal processes relating to social security, retrenchment and statutory reporting.
Conclusion
The notification of the Rules by the Central Government reflects a significant operational development since the enactment of the Labour Codes. While the Rules are at present applicable only to establishments for which the Central Government is the appropriate government, the State Governments are also in the process of finalising and notifying their respective Rules under the Labour Codes. Accordingly, employers should closely monitor developments in the relevant States and assess their compliance obligations as and when the respective State Rules are notified. As the implementation landscape continues to develop across different jurisdictions, employers should take a proactive approach to evaluating their existing employment practices, workplace policies and statutory compliance mechanisms. Timely alignment with the evolving legal framework will not only assist in ensuring regulatory compliance but also strengthen governance processes and minimise potential compliance risks as India's labour law regime continues to progress towards a more streamlined and technology-driven framework.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
