4 key labour codes come into effect; appointment letter, timely wage and social security now mandatory
NEW DELHI: The government on Friday mandated that all employers must issue appointment letters and ensure timely payment of wages under the four major Labour Codes that have come into effect from today (21 November 2025). The new regulations also require that all workers—including gig and platform workers—receive social security coverage, such as PF, ESIC, insurance, maternity benefits, and pension. With the new law in force, women are now allowed to work at night and in all types of occupations, subject to their consent and the required safety measures.
According to the Ministry of Labour and Employment, the labour codes will bring significant improvements in wages, workplace safety, social security, equality, and employee rights across several sectors. The four labour codes are the Code on Wages- 2019, the Industrial Relations Code- 2020, the Code on Social Security- 2020, and the Occupational Safety, Health and Working Conditions (OSH) Code- 2020. Together, they replace and streamline 29 older labour laws.
"Many of India’s labour laws were framed in the pre-independence and early post-independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different. While most major economies have updated and consolidated their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 Central labour laws," said the ministry in a press note.
Under the new law, employers are now required to issue appointment letters to all workers—a practice that was not mandatory earlier. Gig workers, platform workers, and many informal-sector workers who previously lacked social security protection will now be entitled to PF, ESIC, insurance, maternity benefits, pension, and other welfare measures.
The Code on Wages makes minimum wages applicable to all workers. Employers must also provide free annual health check-ups to workers aged above 40. Timely payment of wages is now a legal obligation. ESIC coverage has been expanded to a Pan-India framework. It is voluntary for establishments with fewer than 10 employees but mandatory for units engaging even a single worker in hazardous processes. The Codes also ease compliance for businesses through single registration, a PAN-India licence, and a single annual return.
Highlighting the reforms, the ministry said that fixed-term employees will receive all benefits equal to permanent workers, including leave, medical facilities and social security. Gratuity eligibility has been reduced to one year of continuous service, instead of five. Fixed-term employees must also be paid wages equal to those of permanent staff.
For the first time, the law defines gig work, platform work, and aggregators. Aggregators are required to contribute 1–2 percent of their annual turnover (capped at 5 percent of the amount paid or payable to gig and platform workers) towards social security.
All MSME workers are covered under the Social Security Code, 2020, with eligibility based on employee count. MSME workers will receive guaranteed minimum wages and access to basic facilities such as canteens, drinking water, and rest areas.
For beedi and cigar workers, minimum wages are guaranteed, and working hours are capped at 8–12 hours per day and 48 hours per week. Plantation workers are now covered under both the OSHWC Code and the Social Security Code. Digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt performers, will now receive full benefits.
All workers must be issued appointment letters clearly stating their designation, wages, and social security entitlements. Overtime work beyond prescribed hours requires the worker’s consent and must be compensated at double the normal wage rate.
For mine workers, the Social Security Code treats certain commuting accidents as employment-related, subject to conditions of time and place.
For migrant workers in the textile sector—whether direct, contractor-based, or self-migrated—equal wages, welfare benefits, and PDS portability have been ensured. They can raise claims for up to three years to settle pending dues, and overtime must be paid at double the wage rate.
For IT and ITES workers, salary must be released by the 7th of every month. Equal pay for equal work has been mandated, and women’s participation has been strengthened with the option to work night shifts in all establishments.
All dock workers will receive formal recognition and legal protection, with mandatory appointment letters guaranteeing social security.
In the export sector, fixed-term workers will receive gratuity, provident fund (PF), and other social security benefits.