Sunday, 23 November 2025

Implementation of four Labour Codes in the Country

Ministry of Labour & Employment has notified implementation of following four codes w.e.f. 21.11.2025 with rationalisation of 29 existing labour laws many of which were framed in the pre-independence and early post independence era.
HIGHLIGHTS 

➡️ Mandatory appointment letters to all workers

➡️ Written proof will ensure transparency, job security, and fixed employment

➡️ Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage

➡️ Mandatory for employers to provide timely wages, ensuring financial stability, reducing work stress and boosting overall morale of the workers

➡️ Employers must provide all workers above the age of 40 years with a free annual health check-up  

➡️ Promote timely preventive healthcare culture


These Labour Codes will empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work thereby paving the way for a more resilient and future-ready Aatmanirbhar Bharat. These Labour Codes have been framed to keep pace with the changing economic realities and evolving forms of Government as well as reduction in compliance burden. These Codes have incorporated new provisions to align with the global modern industrial ecosystem, while retaining the provisions which are beneficial for both workers and industries.

The Code on Wages seeks to ensure timely and fair payment of wages, promote the principle of equal remuneration for equal work, and provide a uniform structure for minimum wages, bonus, and wage-related matters. This Code universalizes right to minimum wages and timely payment of wages to all the employees regardless of wage ceiling, employment sector. The Code ensures fixation of a National Floor Wage to ensure that no worker receives a wage below the minimum living standard.
Under the Industrial Relations Code, the definition of “worker” has been expanded to ensure that more workers have access to basic labour rights, healthcare and sick leave. The Code provides Enhanced Retrenchment Compensation, Statutory recognition to the Trade Unions, improved mechanism for resolution of industrial disputes, workers’ participation and women’s representation in grievance redressal forums and Regulation of Strikes and Lockouts by requiring 14 days’ prior notice. The concept of Fixed Term Employment (FTE) has been introduced, which allows engagement of workers through a direct written contract between the employer and the employee for a specified duration. The Code introduced the concept of Worker Re Skilling Fund. The provisions relating to the requirement of certified standing orders shall apply only to industrial establishments employing 300 or more workers.

The Code on Social Security extends social security protections for the gig and platform workers who were not earlier covered under any Welfare Scheme. The fixed term employees are eligible to receive all benefits equal to permanent workers, including leave, medical, social security and gratuity on pro-rata basis. The Code provides for Universal coverage of Employees Provident Fund, National Registration & Unique Identification for unorganised, gig, platform workers, Expansion of “Family” definition by including mother-in-law and father-in-law of a woman employee with income cap,

The Occupational Safety, Health and Working Conditions Code provides for streamlining compliance through measures such as single registration, all-India licences, electronic filings, and time-bound approvals. It reduces procedural hurdles and encourages investment. At the same time, it strengthens protections for workers by ensuring formalisation of employment, improved health and safety standards, and better welfare measures. Thus, the Code balances the twin objectives of safeguarding worker rights and safe working conditions, and creating a business-friendly regulatory environment spur economic growth and employment thereby, making India’s labour market more efficient, fair, and future-ready. It ensures Formalization through appointment letters, Free annual health check-ups, Flexibility in fixing working hours and overtime hours, Boost to female labour force participation, defines Core and Non-Core Activities in an establishments for regulation and abolition of Contract Labour and Third party audit & certification of factories.

The four Labour Codes contain provisions like Improvement Notice, Compounding of Offences and shifted the responsibilities of Inspectors to Inspectors-cum-Facilitators.

The State will work with the Central Government for smooth implementation of the Labour Codes for transformational Changes, better wages, safety, social security & enhanced welfare for Odisha’s Workforce.

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