India’s labour landscape has undergone one of its most sweeping reforms in decades, with the Union government officially enforcing a consolidated framework that merges 29 separate labour laws into four comprehensive Labour Codes. Effective from November 21, these new regulations are designed to modernise workplace norms, expand employee protections, and bring gig-economy earners under formal benefit structures.
The new codes include:
- Code on Wages (2019)
- Industrial Relations Code (2020)
- Code on Social Security (2020)
- Occupational Safety, Health and Working Conditions Code (2020)
Together, they redefine how wages, employment terms, benefits, safety standards, and industrial relations operate across India. Importantly, the provisions apply not only to full-time employees, but also contract workers, part-timers, freelancers, platform workers, and gig-app earners — a first in Indian regulatory history.
What Changes For Employees? 12 Key Updates
1. Universal Minimum Wages
The new law guarantees a statutory right to minimum wages for all workers, regardless of sector or wage limits. A National Floor Wage will be set by the Centre to prevent exploitation and arbitrage between states.
2. Revised Wage Structure & Lower Take-Home Pay
Basic salary must now legally constitute at least 50% of total compensation.
While this may reduce immediate take-home pay, long-term benefits such as PF, pension, and gratuity contributions will rise.
3. Social Security For Gig and Platform Workers
Swiggy, Zomato, Uber, Ola, delivery riders, app-based service providers — all now gain access to:
✅ life and disability cover
✅ health benefits
✅ social security corpus
Aggregators must contribute a percentage of revenue to fund it.
4. Gratuity After Just One Year
Fixed-term employees no longer need five years of continuous service.
Now, one year of employment qualifies them for gratuity — a major boost for contractual workforce stability.
5. Mandatory Written Appointment Letters
Even informal-sector or gig-based workers must receive documented proof of:
- job role
- wages
- benefits
- terms of service
This increases legal protection and reduces exploitation.
6. Double Wages for Overtime
Employees working beyond standard hours must be paid at least twice their regular wage rate — without exception.
7. Faster Access to Paid Leave
The eligibility threshold has been reduced from 240 days to 180 days, allowing newer employees to receive paid leave sooner.
8. Women Allowed Night Shifts
Women can now legally work before 6 AM and after 7 PM, provided:
✅ they consent
✅ employers provide transport & safety
✅ workplaces comply with security norms
The rule aims to boost gender workforce participation.
9. Work-From-Home Recognised
For the first time, WFH is formally recognised in the labour framework for service-sector roles, allowing flexible hybrid arrangements by mutual agreement.
10. Free Annual Health Checkups (40+ Employees)
All workers aged above 40 must receive employer-funded yearly medical examinations — promoting early detection and public health savings.
11. Strict Wage Payment Deadlines
Employers must now follow fixed timelines:
- Monthly wage: within 7 days
- Weekly wage: within 7 days
- Upon termination/resignation: within 2 working days
12. Commute-Related Accidents Covered
Travel between home and workplace is now considered employment-linked, making employees eligible for compensation in case of injury or fatality.
Why These Reforms Matter
These changes reshape the employment ecosystem in multiple ways:
✅ For Employees
- stronger job security
- more transparency
- financial protection
- long-term savings growth
- improved health and safety
✅ For Employers
- simplified compliance structure
- streamlined legal requirements
- reduced litigation
✅ For India’s Economy
- boosts formalisation
- expands taxable workforce
- aligns India with global labour standards
Economists note that with rising gig-economy participation and hybrid work, these reforms help bridge gaps between traditional and modern employment models.
