The new Labour codes have been one of the most significant transformations in the landscape of India’s workforce. These reforms are done to modernize labour laws, bring in transparency, strengthen worker welfare, and support the fast-evolving industries in India. In essence, the simplification of compliance, consistent social security, and the establishment of uniform standards across sectors will establish a balanced ecosystem for employers and employees to prosper.
From fixed-term employment and gig work to MSMEs, plantations, and IT/ITES—every sector stands to gain through better protection, fair wages, enhanced safety, and increased opportunities for women and youth. The following highlights sum up how the Labour Codes shape a more inclusive, secure, and future-ready world of work in India.
Fixed-term employees (FTE)
- FTEs to receive all benefits equal to permanent workers, including leave, medical, and social security.
- Gratuity eligibility after just one year, instead of five.
- Equal wages as permanent staff, increasing income and protection.
- Promotes direct hiring and reduces excessive contractualization.
Gig & Platform workers
- Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time.
- Aggregators must contribute 1–2% of the annual turnover, capped at 5% of the amount paid/payable to gig and platform workers.
- Aadhaar-linked Universal Account Number will make welfare benefits easy to access, fully portable, and available across states, regardless of migration.
Contract workers
- Fixed-term employees (FTE) will increase employability and ensure social security, legal protection like benefits equal to permanent employees.
- Fixed-term employees will become eligible for gratuity after one year of continuous service.
- Principal employers will provide health benefits and social security benefits to contract workers.
- Workers get free annual health check-up.
Women workers
- Gender discrimination legally prohibited.
- Equal pay for equal work ensured.
- Women are permitted to work night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and mandatory safety measures.
- Mandatory women’s representation in grievance redressal committees
- Provision to add parents-in-law in Family Definition of Female employees, expanding dependent coverage and ensuring inclusivity.
Youth workers
- Minimum wage is guaranteed for all workers.
- All workers to get appointment letters, – promoting social security, employment history and formal employment.
- Worker exploitation by employers is prohibited—payment of wages during leave has been made mandatory.
- To ensure a decent standard of living, workers will receive wages as per the floor wage determined by the Central Government.
MSME workers
- All MSME workers covered under the Social Security Code, 2020, eligibility based on employee count.
- Minimum wage guaranteed for all workers.
- Workers will have access to facilities such as canteens, drinking water, and rest areas.
- Provisions for standard working hours, double overtime wages, and paid leave.
- Timely wage payment ensured.
Beedi & Cigar workers
- Minimum wages guaranteed for all.
- Working hours capped at 8 -12 hours per day, 48 hours per week has been capped.
- Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.
- Timely payment of wages ensured.
- Workers eligible for Bonus after completing 30 days of work in a year.
Plantation workers
- Plantation workers are now brought under the OSHWC Code and the Social Security Code.
- Labour Codes apply to plantations with more than 10 workers or 5 or more hectares.
- Mandatory safety training on handling, storing, and using chemicals.
- Protective equipment mandatory to prevent accidents and chemical exposure.
- Workers and their families to get full ESI medical facilities; Education facilities for their children are also guaranteed. 9. Audio-Visual & Digital
Mine workers
- The Social Security Code treats certain commuting accidents as employment-related, subject to conditions of time, and place of employment.
- Central Government notified standards to standardize workplace occupational safety and health conditions.
- Health safety for all workers will be ensured. Free annual health check-up will be provided.
- Limit on working hours set to 8 to 12 hours per day, 48 hours per week to ensure health and work-life balance.
Hazardous industry workers
- All workers will receive free annual health check-ups.
- Central Government will frame national standards for better safety of workers.
- Women can work in all establishments, including underground mining, heavy machinery, and hazardous jobs, ensuring equal job opportunities for all.
- Mandatory safety committee at each site for on-site safety monitoring, and safe handling of hazardous chemicals ensured.
Textile workers
- All Migrant Workers (direct, contractor-based and self-migrated) to get Equal wages, welfare benefits and PDS portability benefits.
- Workers can raise claims for upto 3 years for settlement of pending dues, facilitating flexible and easy resolution.
- Provision for double wages for workers for overtime work.
IT & ITES workers
- Release of Salary mandatory by the 7th of every month. Transparency and trust ensured.
- Equal pay for equal work made mandatory, women’s participation is strengthened.
- Facility for women to work night shifts in all establishments – women to get opportunity to earn higher wages.
- Timely resolution of harassment, discrimination, and wage related disputes.
- Guarantee of social security benefits through fixed-term employment and mandatory appointment letters.
Dock workers
- All Dock workers to get formal recognition, Legal Protection.
- Mandatory appointment letters to guarantee social security benefits.
- Provident funds, pension, and insurance benefits ensured for all, whether contract or temporary dock workers.
- Employer-funded annual health check-ups are mandatory.
- Dock workers to get mandatory medical facilities, first aid, sanitary and washing areas, etc., to ensure decent work conditions and safety.
Export sector workers
Export sector fixed term workers to receive gratuity, provident funds (PF), and other social security benefits.
- Every worker has the option of availing annual leave after 180 days of work in a year.
- Every worker gets right to timely wage payment and no unauthorized wage deductions and no wage ceiling restrictions.
- Women allowed to work in night shifts with consent, ensuring opportunity to earn higher income.
- Safety and welfare measures include mandatory written consent, double wages for overtime, safe transportation, CCTV surveillance, and security arrangements.
The Labour codes collectively reinforce India’s commitment to building a fair, transparent, and progressive labour ecosystem. By streamlining regulations and extending social security to every corner of the workforce, these reforms empower workers while enabling businesses to operate with clarity and consistency.
Whether it’s wage protection, health and safety, gender inclusivity, or digital-era employment recognition, the Labour Codes pave the way for a more resilient and equitable economy. As industries continue to expand and innovate, these reforms ensure that India’s workforce remains protected, productive, and prepared for the future.
