The government has finally initiated the long-pending labour reforms, bringing four labour codes into effect from 21 November 2025.

The move, which replaces 29 central labour laws with a consolidated framework, aims to formalise employment, widen social security coverage and update workplace norms.

Of the four codes, the Wage Code standardises minimum wages and payment rules. The Industrial Relations Code simplifies hiring, layoffs, and dispute processes. The Social Security Code extends schemes like PF, ESI and insurance, providing social security to gig, platform, and unorganised workers. Finally, the OSH Code sets uniform norms for workplace safety, working hours, and welfare.

The rollout of these reforms had been pending for years, as states had their own different sets of rules. On the other hand, industries sought clarity on compliance, a major bone of contention for businessmen operating in various states.

The notification now sets the stage for a significant shift in how work, safety and social protection are governed across sectors.

While this is widely welcomed by gig workers, who are stuck between the rigid and contradictory scattered set of labour laws drafted between the 1930s and 1950s, what about their employers?

Before we get into details, here are the key highlights of what the recently introduced labour codes are all about…

• Gig and platform workers will now receive formal social security for the first time. Aggregators — including ecommerce and quick-commerce platforms — must contribute 1–2% of their annual turnover, capped at 5% of payouts to gig workers, into a central welfare fund.
• Companies to face higher employee-related costs as PF, ESIC and insurance cover expand. Minimum wages become universal, overtime must be paid at double........
  

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