New labour laws have come into effect in India from April 1, 2026, bringing major updates for employees and employers.
These rules aim to make working conditions clearer, improve work-life balance, and ensure fair overtime payment across sectors.
New Structure of Labour Laws in India
The government introduced these changes as part of a major reform announced on November 21, 2025. Under this, 29 existing labour laws have been combined into four simplified codes:
Wage Code
Industrial Relations Code
Social Security Code
Occupational Safety Code
The main goal of this restructuring is to bring uniform rules across the country, especially regarding working hours and overtime payments.
Working Hours and Overtime Rules Explained
According to the new rules, an employee should not work more than:
8 hours a day
48 hours a week
Any work beyond this limit will be counted as overtime.
The biggest change is in overtime payment. Employees must now be paid twice their regular salary rate for extra working hours. This is designed to ensure fair compensation and discourage excessive workload.
Employee Consent is Now Required
A key safeguard in the new system is employee consent. Employers cannot force overtime without permission from the worker.
This rule ensures that extra working hours are agreed upon in advance, helping employees maintain a healthier work-life balance and preventing misuse of overtime policies.
Who is Not Eligible for Overtime Benefits?
Not all employees will receive overtime pay under these rules. Certain categories are excluded:
Managers and administrative staff are generally not eligible
Supervisory employees may or may not qualify depending on salary and job role
In many cases, higher-paid managerial positions are exempt from overtime benefits.
What to Do If Overtime is Not Paid
If an employer refuses to pay overtime, employees have several options:
First, try to resolve the issue directly with the employer
If unresolved, approach labour authorities like the Labour Commissioner or Inspector-cum-Facilitator
File a complaint with a wage tribunal or judicial magistrate if needed
Important documents like salary slips, attendance records, and job contracts are essential for such cases. Employees usually have 2 to 5 years to file a complaint.
Focus on Fair and Equal Workplace Rules
Along with overtime reforms, the new labour codes also focus on fairness at the workplace. Employers are not allowed to discriminate in:
Hiring
Salary
Working conditions
This includes protection based on gender identity, including transgender employees.
