India’s Biggest Labour Overhaul in 75 Years Goes Live Today

India entered a new phase of workplace rules starting November 21, 2025. The government activated the four new Labour Codes that replace 29 older laws. Many of those laws were written decades ago and no longer fit today’s work culture.

The new system brings one common set of rights for office staff, factory workers, delivery riders, cab drivers, and people who work from home. More than 40 crore workers come under these rules. This shift changes how companies pay, how they hire, and how they manage work hours. It also changes what workers can expect from their employers.

Key Takeaways

• The four Labour Codes replace 29 old laws across India.
• Gig and platform workers now get social security benefits.
• Gratuity becomes available after 1 year for contract workers.
• Overtime must be paid at double the normal rate.
• Women can work night shifts with mandatory safety.
• Work-from-home is officially part of the law.
• The weekly limit stays at 48 hours, with new shift options.

The Four Labour Codes in Simple Words

The new rules come through four separate codes that cover wages, workplace safety, social benefits, and industrial relations. The Code on Wages ensures a clear minimum wage and timely salary for every worker. The Industrial Relations Code defines how companies manage hiring, firing, disputes, and strikes. The Social Security Code brings PF, insurance, and gratuity to almost all workers, including those in the gig economy. The Occupational Safety Code focuses on safe workplaces, fixed working hours, and allows women to take night shifts with proper security.

These codes create a single structure across India. Workers in different states will now have more uniform rules.

Major Changes Workers Will Notice

Gratuity Available After One Year

The new rules allow fixed-term and contract workers to receive gratuity after one year of continuous work. Earlier, the rule required five years for most workers. This helps workers who shift jobs more often. The ₹20 lakh tax-free limit stays the same. Permanent employees already had this benefit. Now contract staff and gig workers also get equal treatment.

Overtime Must Be Paid at Double Rate

Companies must pay double the normal hourly wage for overtime. Workers cannot be forced to do extra hours unless they agree. Many industries earlier managed overtime without proper pay. The new rule sets a clear standard. Workers who stay beyond regular hours get stronger protection.

Gig Workers Finally Enter the Social Security System

Delivery workers and cab drivers from platforms like Swiggy, Zomato, Uber, and Ola now get official recognition. Companies will contribute to a social security fund. This fund helps workers receive health insurance, accident cover, and benefits similar to a pension. For the first time, gig workers are part of the same system as employees in offices and factories. This fills a long-standing gap.

Women Can Work at Night with Safety Rules

Women can now work before 6 AM or after 7 PM in all sectors. This includes IT, healthcare, retail, manufacturing, and more. Companies must provide secure transport and proper safety arrangements. They must also take written consent from the women who choose to work during these hours. This move opens more job options for women.

Free Annual Health Check-Up After Age 40

Any company with more than 40 workers must offer a free yearly medical check-up for employees above 40 years of age. Early diagnosis becomes a legal requirement. Many firms already offered this, but it was not universal. Now it becomes a right for workers in medium and large workplaces.

Work-from-Home Now Has Legal Backing

Remote work is now officially recognised. Companies and employees can agree on WFH rules that suit their work style. This avoids confusion when offices try to enforce attendance policies. This also supports flexible jobs in IT and service sectors.

Weekly Limit Stays at 48 Hours

The standard limit remains 8 hours per day or 48 hours per week. A new option allows 12-hour shifts for 4 days a week, but only if the state approves and the worker agrees. Overtime starts after 8 hours. This allows workers more weekly flexibility.

Quick Before vs After Table – See the Difference Yourself

What Changed	Old Rule (Before Nov 21)	New Rule (From Today)	Who Wins Big?
Gratuity eligibility	5 years	Just 1 year (even contract workers)	Contract & gig workers
Social security	Only regular office/factory staff	Gig, platform, unorganised workers included	Delivery riders, cab drivers
Women night shifts	Banned in many states	Allowed everywhere with safety	Women in BPO, hospitals, IT
Overtime pay	Often single rate or nothing	Double the normal rate	Everyone who stays late
Layoff permission	Needed for companies with 100+ workers	Needed only for 300+ workers	Small & medium businesses
Minimum wage	Different rules state-wise	National floor plus uniform definition	Lowest-paid workers
Appointment letter	Not compulsory everywhere	Mandatory for every single worker	New hires & contract staff

Public Reaction Across Platforms

Online discussions show mixed emotions. The hashtag #LabourReforms crossed 500K posts in one day. Delivery partners shared photos and messages celebrating accident insurance and future security. Many women in tech and healthcare welcomed the freedom to work night shifts. Startup founders and factory owners supported the reduced paperwork.

At the same time, trade unions raised concerns. They worry that companies with up to 300 employees can now lay off workers without government approval. Some workers fear that easier hiring may also lead to easier firing. Rural workers are questioning whether small factories will follow the rules in reality.

Both sides highlight valid points. The laws look strong on paper. The real impact depends on how strictly states and companies implement them.

What Happens Next

Most states have accepted the Labour Codes. A few are still updating specific rules. Companies have a short adjustment period to shift to new payroll systems and digital compliance. The government expects social security coverage to rise from 19 percent to more than 80 percent over the next few years.

Final Word

For workers, especially in the gig and unorganised sectors, the new system gives stronger rights. For businesses, the rules bring cleaner systems but also higher contributions for PF, insurance, and overtime. November 21, 2025 marks a major shift in how India works. The real change will be visible as states enforce the rules and companies follow them.

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