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Business India News Updated Dec 3, 2025

India's New Labour Codes: How They Build a Fairer, More Inclusive Workforce

The government is set to notify and enforce the rules under four new Labour Codes very soon. These codes aim to create a stronger and more inclusive workforce by expanding social security and improving working conditions. Key changes include covering gig workers and ensuring gratuity benefits after one year of service. Industry leaders believe these reforms will boost India's competitiveness and attract global investment.

New Labour Codes to be notified soon to build a more inclusive workforce: Mandaviya

New Delhi, Dec 3

The new Labour Codes, to be notified soon, are the foundation of a stronger, fairer and more inclusive workforce, Minister of Labour and Employment Mansukh Mandaviya said on Wednesday.

The ministry has started the process for enforcing rules under the notified law and will pre-publish draft rules under the four Labour Codes shortly.

The four labour codes -- Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 -- were notified on November 21.

"Our working class is the backbone of the nation, and securing their welfare and social security is essential. Every worker, entrepreneur, and industry plays a distinct role in driving growth. The new Labour Codes are the foundation of a stronger, fairer and more inclusive workforce," Mandaviya said during a session on labour reforms for Viksit Bharat at a CII event.

He further stated that the government is strengthening both the rights and welfare of workers.

"Our labour reforms go beyond merging labour laws; they aim to give every worker the dignity and respect they deserve. The new Labour Codes improve health and safety, especially in hazardous jobs, via annual health check-ups and better protections. They also ensure that anyone who has worked for at least one year is eligible for gratuity," the minister elaborated.

To expand social security, the codes now cover gig and platform workers as well.

"As per ILO, today nearly 64 per cent of our citizens receive at least one form of social security, placing India among the leading countries in social protection coverage," said Mandaviya.

"Talent and skills are inseparable, and we must ensure they move in alignment with global requirements. There is immense demand for skilled Indian professionals across the world, and our focus must be on mapping and developing these capabilities in a structured way," the minister added.

According to CII President Rajiv Memani, the new Labour Codes are a significant step forward from the industry perspective.

"As we move towards a Viksit Bharat, the reforms will play a crucial role in attracting future investments. By simplifying processes, reducing transaction costs and improving ease of doing business, we are strengthening India’s competitiveness and making the country even more attractive for global investors," he told the gathering.

— IANS

Reader Comments

Shreya B

The intention sounds good, but the proof will be in the execution. We've seen many policies announced with great fanfare that get stuck in red tape. I truly hope this brings real change for our workers, especially in the unorganized sector.

Aman W

Simplifying 29 laws into 4 codes is a massive reform. Should make compliance easier for MSMEs like mine. Less time dealing with inspectors, more time focusing on business and employees. Fingers crossed!

Priya S

Annual health check-ups for hazardous jobs is a crucial provision. My father worked in a factory for years with no such facility. It's about dignity, as the minister said. A step in the right direction for a Viksit Bharat.

Michael C

As someone who works with global teams, the focus on aligning skills with global demand is key. India has incredible talent. Streamlining labour laws will definitely boost investor confidence and create more formal jobs.

Kavya N

I respectfully disagree on one point. While coverage is expanding, calling 64% social security coverage "leading" feels like spin. We have a long way to go to ensure *quality* coverage for all, not just a basic scheme. The codes are a foundation, but let's be realistic about the journey ahead.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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