The Central government has officially notified the final rules under the four new labour codes, marking a major change in India’s labour system.
The move comes nearly four months after draft rules were released for public consultation.
These new rules aim to simplify labour laws, improve worker rights, ensure minimum wages, and expand social security benefits to more employees across the country.
The four labour codes include:
Code on Wages, 2019
Industrial Relations Code, 2020
Code on Social Security, 2020
Occupational Safety, Health and Working Conditions Code, 2020
Although these codes came into effect earlier, full implementation required detailed rules from both the Centre and state governments.
Major Benefits for Workers
The new labour framework introduces several worker-friendly changes aimed at improving workplace conditions and employee welfare.
Some of the key benefits include:
Mandatory appointment letters for employees
Free annual health check-ups for workers above 40 years
Equal pay and equal opportunity for women
Permission for women to work in different shifts
Maximum 48 working hours per week
At least one weekly rest day
Overtime payment for extra working hours
The government says these changes are designed to make workplaces safer, more transparent, and more organised.
New Overtime and Working Hour Rules
The Occupational Safety, Health and Working Conditions Code has introduced strict rules regarding overtime and work hours.
Under the new system:
Workers must receive double wages for overtime work
Overtime applies after 8 hours a day or 48 hours a week
Employers cannot ask workers to do more than 144 hours of overtime in a quarter
Companies will also have to maintain proper records of overtime payments and mention them separately in salary slips.
This step is expected to improve transparency and prevent misuse of worker hours.
Reskilling Fund for Laid-Off Workers
One of the biggest highlights of the Industrial Relations Code is the creation of a National Reskilling Fund.
This fund will support workers who lose jobs due to technological changes or economic reasons.
According to the new rules, employers must deposit an amount equal to 15 days’ salary into the reskilling fund within 10 days of laying off a worker.
The idea is to help affected employees learn new skills and improve their chances of finding another job.
Social Security Coverage to Expand
The Code on Social Security aims to bring more workers under formal social protection systems.
The new rules provide clarity on:
Registration of gig and platform workers
ESI contributions
Creche facilities
Employee nominations
Digital registration systems
This is especially important for workers in sectors like app-based services and platform jobs, who were previously outside many traditional labour protections.
Impact on Companies and States
Experts say these rules mark a major shift from policy discussions to actual implementation.
The rules will mainly apply to sectors controlled by the Central government, including:
Banking
Insurance
Telecom
Mines
Oil fields
Airports and air transport
Central public sector companies
At the same time, state governments are also expected to frame similar rules based on the central framework.
This means the final impact on businesses and workers across India will become clearer once states complete their own implementation process.
