The Union government has implemented four major labour codes that overhaul India’s employment laws. These codes make all fixed-term employees eligible for gratuity after one year of continuous service. Earlier, they had to complete five years to qualify. The laws also introduce a national minimum wage for all workers, replacing the earlier system that covered only certain scheduled industries.
Union labour minister Mansukh Mandaviya announced the rollout on Friday and said the government had notified the codes and the rules needed to enforce them.
Gig and Platform Workers Recognised
For the first time, the labour laws officially define gig and platform work. Under Section 2(35) of the Code on Social Security, 2020, a gig worker is described as “a person who participates in a work arrangement and earns from such activities outside of a traditional employer–employee relationship”.
This recognition brings gig workers—such as delivery partners and app-based drivers—into India’s broader social security system.
Mandatory Medical Checkups and Written Appointment Letters
The codes introduce several worker-friendly provisions across sectors. Employers must now provide free annual medical checkups to all employees above 40. This step aims to strengthen preventive healthcare at the workplace.
Companies must also issue a written appointment letter before hiring any worker, ensuring clarity on job terms and rights from the beginning.
Fixed-term employees will receive the same benefits as permanent workers. These include regulated work hours, medical benefits, and paid leave. All companies must pay salaries on time, while IT firms must release salaries by the 7th of every month.
🔰 Benefits for IT Sector:
— PIB India (@PIB_India) November 21, 2025
✦ Release of Salary mandatory by the 7th of every month
✦ Equal pay for equal work made mandatory, women’s participation is strengthened
✦ Facility for women to work night shifts in all establishments – women to get opportunity to earn higher… pic.twitter.com/JvfcDVFswv
Replacing Older Labour Laws
The Code on Wages (2019), Industrial Relations Code (2020), OSH Code (2020), and the Social Security Code (2020) were passed by Parliament in 2019-20 to replace 29 outdated labour laws. Delays in implementation pushed the rollout until now, but the new framework is finally in effect.
More Flexibility for Employers, Safer Conditions for Workers
The labour codes give companies greater freedom to hire and dismiss workers, but they also raise safety, welfare, and gender-equality standards. Women can now work night shifts and take jobs in hazardous industries such as mining, provided they consent and employers ensure necessary safety measures.
“The labour codes promote employment opportunities for women and are gender neutral,” Union labour minister Mansukh Mandaviya said.
Wider Coverage Under ESIC
The codes expand the reach of the Employees’ State Insurance Corporation (ESIC). Any establishment with even one employee engaged in hazardous work must enrol. ESIC coverage will now apply nationwide, instead of only in select notified areas.