India's New Labour Codes: What Changed for Employers

Four Codes, 29 Laws, One Effective Date

India's four Labour Codes — the Code on Wages 2019, the Industrial Relations Code 2020, the Occupational Safety, Health and Working Conditions Code 2020, and the Code on Social Security 2020 — became effective on November 21, 2025, consolidating 29 existing central labour laws into a single framework. Central rules under the Wages, Industrial Relations, and Social Security Codes followed on May 8, 2026, with OSH Code rules notified a day later.

What's Actually in Force Right Now

All four codes are technically effective, but that doesn't mean every provision applies uniformly yet. Labour is a concurrent subject under India's constitution, so individual states are still notifying their own rules on top of the central framework. In practice, this means compliance obligations can currently differ by state even under the "same" code, and HR teams operating across multiple states need to track both central and state-level notifications.

Mandatory Appointment Letters

One of the most immediate changes for employers: every worker must now receive a formal appointment letter, regardless of employment type. This closes a long-standing gap where a large share of India's workforce, particularly contract and informal workers, had no written proof of employment.

Gig and Platform Workers Get Social Security

The Code on Social Security extends formal social security coverage to gig and platform workers for the first time — a category that previously sat outside EPF, ESI, and similar protections entirely. Companies that engage gig or platform workers, even indirectly through aggregators, should expect new registration and contribution obligations tied to this provision as state rules finalize.

Minimum Wage Applies to Everyone

The Code on Wages establishes a statutory floor wage that applies across all employment categories, replacing the previous patchwork where minimum wage protection didn't extend uniformly to every sector and worker classification.

What HR Teams Should Do Now

• Audit appointment letter coverage: Confirm every worker on payroll, including contract staff, has a compliant appointment letter on file.
• Track state rule notifications: Since states are notifying rules separately, compliance requirements may shift by location even after the central framework is settled.
• Review gig/platform worker engagements: If your organization uses gig or platform labour in any capacity, map out where new social security obligations may apply.
• Update wage structures: Confirm every pay band meets the new statutory floor wage requirements under the Code on Wages.

The shift from 29 fragmented laws to four consolidated codes is meant to simplify compliance over time, but the transition period — with central rules only recently notified and state rules still rolling out — is exactly when compliance gaps tend to open. Fovestta™'s compliance engine is updated as new rules are notified, so your payroll and HR processes stay aligned with the current requirement, not last year's.