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The Indian government has been developing a new framework for Indian labour laws since 2020 – it has been a vast exercise involving actions at the Central (Federal) and State levels. These new labour laws, officially known as Labour Codes, came into force on November 21, 2025.
In summary, the new Labour Codes comprise:
- Code on Wages, 2019 – Governs all aspects of wages, including payments, minimum wage levels, pay parity, and related conditions.
- Code on Social Security, 2020 – Addresses all matters about social security payments and benefits.
- Industrial Relations Code, 2020 – Regulates trade unions, workmen protection, industrial tribunals, and employer-employee relations.
- Occupational Safety, Health and Working Conditions Code, 2020 – Establishes standards for working hours, workplace conditions, factory regulations, service rules, and operational procedures for employers and employees.
Are the Labour Codes in Effect?
The Labour Codes operate at three levels: (i) the Central (Federal) framework for all covered establishments, (ii) the Central rules that operationalise the Codes at the federal level, and (iii) the State rules that operationalise the Codes within each State.
Currently, only the first level has been brought into force. i.e., the Central (Federal) framework for all covered establishments. The Central and State rules have not yet been formally notified, but are expected shortly.
Immediate impact on employers:
In the meantime, certain key provisions of the Labour Codes are already active. Therefore, while full enforcement may appear delayed until all rules are in place, companies should not treat implementation as suspended and must begin complying or preparing to comply with the applicable provisions.
To facilitate understanding and strategic planning in response to these Labour Codes, BTG Advaya will publish a series of informational articles. This introductory article addresses key aspects and nuances of the new legislative framework.
Please access our presentation, which explains the background of these legislative changes, their material implications for companies and employers, and their intended benefits for both employees and employers in streamlining labour law compliance.
To view the full article please click here.
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.
