Jag Mohan Thaken
After a thumping win in the Bihar Assembly elections, the BJP-led central government has begun implementing its long-pending policy agendas. On Friday, November 21, 2025, it officially notified the four labour codes that had been awaiting implementation since 2019 and 2020.
The government claims that India’s Labour Codes mark a major reform initiative aimed at modernising labour laws, ensuring decent working conditions, timely wages, and long-term protection for workers across all sectors.
Terming it a historic milestone, the Government of India has announced that the four Labour Codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — are being made effective from 21st November 2025. These Codes rationalise and consolidate 29 existing labour laws. According to the government, they modernise labour regulations, enhance workers’ welfare, and align labour systems with global standards, laying a foundation for a future-ready workforce and stronger industries under the vision of Aatmanirbhar Bharat.
In a press release dated 21st November, the government stated that the implementation of these Codes addresses a long-pending need to move beyond colonial-era frameworks and adopt contemporary labour practices. Together, these Codes are projected to empower both workers and enterprises and pave the way for a competitive, self-reliant nation.
Under the new codes, issuing appointment letters to all workers will now be mandatory. This written proof is expected to ensure transparency, job security, and defined employment terms. The Code on Social Security, 2020 brings all workers, including gig and platform workers, under the ambit of social security. It guarantees benefits such as PF, ESIC, insurance, and other welfare schemes.
Under the Code on Wages, 2019, all workers will have a statutory right to minimum wages. Minimum wage protection and timely payment are expected to ensure financial stability. Employers will also have to provide free annual health check-ups for workers above 40 years of age, promoting preventive healthcare.
Timed wage payments have been made a legal obligation to ensure financial security, reduce workplace stress, and improve morale among workers.
To increase women’s workforce participation, the new codes permit women to work at night and in all types of occupations, including higher-paying jobs, subject to their consent and safety measures. This provision is expected to facilitate wider employment options for women.
Previously, ESIC coverage was limited to notified areas, specific industries, and establishments with at least 10 workers. Hazardous industries lacked uniform coverage. Under the new provisions, ESIC benefits will be available pan-India. For establishments with fewer than 10 workers, registration will be voluntary, while for any unit engaged in hazardous processes, ESIC coverage is now mandatory even if only one worker is employed. The government argues that this will significantly expand social protection.
Some Major Benefits of Labour Reforms, as Claimed by the Central Government
1. Fixed-Term Employees (FTE):
FTEs will receive benefits equal to permanent workers, including social security, medical benefits, and leave. Gratuity will be made available after one year of employment instead of five. Equal wages with permanent staff are expected to provide income security.
2. Gig & Platform Workers:
For the first time, definitions for ‘gig work’, ‘platform work’, and ‘aggregators’ have been introduced. Aggregators will contribute 1–2% of their annual turnover (capped at 5% of the amount payable to workers) towards social security. Aadhar-linked Universal Account Numbers are expected to make welfare benefits portable and easily accessible across states.
3. Women Workers:
The Codes prohibit gender discrimination and guarantee equal pay for equal work. Women will be permitted to work in all sectors, including underground mining and heavy machinery, subject to consent and safety provisions. Women’s representation in workplace grievance committees will be mandatory. The inclusion of parents-in-law in the family definition for female employees broadens dependent coverage.
Prime Minister Narendra Modi welcomed the implementation of the Four Labour Codes, calling them one of the most comprehensive labour reforms since Independence. He asserted that these reforms empower workers, simplify compliance, and promote ‘Ease of Doing Business.’ The PM said that the Codes will lay a foundation for universal social security, timely wages, safe workplaces, and increased opportunities, especially for women and youth. According to him, these reforms will build a future-ready labour ecosystem, boost job creation, drive productivity, and accelerate India’s path towards becoming a developed nation.
Union Home Minister and Minister of Cooperation Amit Shah also congratulated the nation’s workers on the implementation of the Codes. He said that the labour reforms represent the biggest change in labour law history, guaranteeing social security, minimum wages, equal opportunities for women, and legal recognition for gig and unorganised workers. He claimed that they would uplift workers’ living standards and make India a global model for labour welfare.
Trade Unions Oppose Labour Codes
In sharp contrast, trade unions have reacted strongly, calling the Codes “draconian, anti-worker, and pro-employer.” Within 24 hours of the notification, several unions reported widespread protests across factories and workplaces, where copies of the Codes were publicly burnt.
On 22 November 2025, the KKC, led by Unorganised Workers and Employees Congress Chairman Dr. Udit Raj, held a protest outside Shramik Shakti Bhavan. He termed the Codes “a conspiracy to usurp workers’ rights for corporate benefit” and demanded their immediate withdrawal.
A Joint Platform of Central Trade Unions (CTUs), including INTUC, AITUC, HMS, CITU, AIUTUC, and several others, has called for nationwide resistance on November 26. The unions are urging workers to wear black badges and burn copies of the Codes, demanding their repeal along with the withdrawal of Shram Shakti Niti 2025.
CTU Allegations and Criticism
In a joint statement released on 21st November, the CTUs condemned the unilateral notification of the Codes, calling it “a deceptive fraud against working people.” The unions argue that the Codes destroy the welfare character of the Indian state and have been enacted despite persistent protests since their passage in Parliament.
The CTUs warn that the reforms mark “a war on labour” at a time of unemployment and rising inflation. They allege that the Codes reduce India to an exploitative master–servant era in collusion with corporate interests.
On Fixed-Term Employment, CITU argues that legalising FTEs will normalise temporary work even in permanent roles, giving employers unchecked power to replace stable jobs with contracts. Gratuity after one year, they say, does not compensate for loss of seniority or job security.
On Women’s Employment, CITU claims that allowing night shifts without enforceable safeguards may lead to coerced consent. They argue that the Codes fail to address core issues faced by women workers, such as contractualisation, harassment, unsafe workplaces, and denial of maternity benefits.
On Social Security for Gig Workers, CITU argues that the Social Security Code does not guarantee universal coverage. The 1–2% aggregator contribution, they contend, is insufficient to fund meaningful benefits. They also highlight that key thresholds for PF, ESI, and gratuity coverage remain unchanged, contradicting the government’s claim that all workers will receive social security.
Political Opposition
The Communist Party of India (Marxist) has strongly opposed the Codes, alleging that they will leave workers unprotected and encourage exploitative capitalism by dismantling labour regulations. According to the CPI(M), the Codes aim to attract investment by weakening workers’ rights, curbing unionisation, and restricting the right to strike.
CPI General Secretary D. Raja described the Codes as a tool to “facilitate the loot of labour for corporate houses” and warned that they will worsen insecurity and inequality across sectors. He termed the reforms “a death knell for job security” and an attack on hard-won labour rights.
The battle over India’s new labour codes has now intensified into a fierce confrontation between the government and trade unions. While the government hails the reforms as progressive and future-oriented, workers’ organisations see them as a threat to labour rights, social security, and democratic protections. With nationwide protests underway, the debate over India’s labour future is set to deepen in the coming days.
