New rules enacted in India as it inches closer to landmark labour reform

India has enacted (or ‘notified’) the Central Rules under all four Labour Codes, marking a major step towards implementation of its landmark labour law reform. While state-level rules are still being finalised, employers should prepare for new compliance requirements covering wages, social security, industrial relations, and occupational health and safety.

India’s long-awaited labour law reforms have reached an important milestone. Following a period of consultation, the Central Government notified the Central Rules under all four Labour Codes on 8 May 2026. These are the Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020 and the Occupational Safety, Health and Working Conditions Code 2020.

As we have reported previously, the Labour Codes represent a historic simplification and streamlining of India’s labour laws. The Central Rules set out the details on key compliance requirements for employers and are necessary to implement these new Codes. In particular, they introduce new prescribed formats and record-keeping requirements, including for registers, notices and other statutory records.

In this article, we examine the key elements of each set of rules, some noteworthy developments at the state-level and key takeaways for employers with operations in India.

Which organisations are covered by the new rules?

Each set of Central Rules will apply to organisations for which the Central Government is the ‘appropriate Government’, including railways, mines, oil fields, major ports, air transport services, telecommunications, banking and insurance companies, central public sector undertakings, autonomous bodies owned or controlled by the Central Government, and contractors engaged by such organisations. 

For private organisations, the respective state governments are in the process of finalising their own rules in alignment with the central framework. While there may be some state-specific variations, the state-level rules are expected to mirror many of the principles set out under the Central Rules. 

Code on Wages (Central) Rules 2026 

The rules contain the following key provisions: 

• Normal working hours of eight hours per day and 48 hours per week. 

• The entitlement to at least one day of weekly rest for employees. Where two weekly rest days are provided, these will ordinarily be Saturday and Sunday. Where only one weekly rest day is provided, it will ordinarily be Sunday.

• In cases where employees are engaged through a contractor, the principal employer must ensure that the contractor receives sufficient funds to pay the wages of the employees in accordance with the Code on Wages. 

• Where employees are engaged through a contractor and the contractor fails to pay them the statutory bonus, the principal employer or organisation is liable to pay the minimum bonus upon receipt of written information and verification of the default.

Occupational Safety, Health and Working Conditions (Central) Rules 2026

The rules contain the following key provisions: 

• appointment letters must be issued in the prescribed format;

• a free annual health examination for employees above the age of 40 employed in dock work, building or other construction work and such other types of work as may be notified by the Central Government;

• sector-specific requirements relating to health, safety, working conditions and welfare facilities;

• the requirement to submit a notice of commencement and cessation of operation relating to contract labour or building or other construction work;

• the requirement to submit a notice of accident or dangerous occurrence to the Labour Authorities; and

• organisations with 500 or more workers must constitute a Safety Committee.

Social Security (Central) Rules 2026

The rules contain the following key provisions: 

• a single registration mechanism under the Occupational Safety, Health and Working Conditions (Central) Rules 2026; 

• no changes to the Employee State Insurance and Employee Provident Fund contribution rates; 

• the requirement to maintain crèche facilities in organisations employing 50 or more employees; and

• the mandatory registration of informal, gig, and platform workers between the ages of 16 and 60 so they can qualify for benefits under social security schemes. 

Industrial Relations (Central) Rules 2026

The rules contain the following key provisions: 

• a structured process for recording statements relating to industrial disputes; 

• the constitution of a Works Committee and a Grievance Redressal Committee for organisations employing the prescribed number of employees; 

• recognition of a trade union with 30% membership as the sole negotiating union; and

• the requirement for employers adopting standing orders to notify the Certifying Officer in accordance with the prescribed procedure.

State-level developments

At a state level, the Haryana Government has confirmed that organisations registered under s.3 of the Occupational Safety, Health and Working Conditions Code 2020 (once the state-level rules are finalised) will not need separate registration or business commencement notification under the Haryana Shops and Commercial Establishments Act 1958. The move aims to eliminate duplicate compliance requirements. However, impacted organisations must still comply with the remaining provisions of the Act, to the extent they do not conflict with the Occupational Safety, Health and Working Conditions 2020 Code.

Elsewhere, the Maharashtra Government has clarified that, once the Occupational Safety, Health and Working Conditions Code 2020 is implemented, organisations with 10 or more employees registered under the Code will not require separate registration under the Maharashtra Shops and Establishments Act 2017. Smaller organisations (with fewer than 10 employees) must still notify commencement of business under the Act. All organisations must also continue to comply with the Act’s provisions to the extent they do not conflict with the Code.

Takeaway for employers

India’s labour law reforms are moving closer to full implementation.

Employers should review and update employment policies, contracts and systems to comply with the new codes, assess the potential cost impact of the revised wage definition on statutory benefits and monitor state-level implementation, as inpidual states may introduce variations.