India has completed the most significant central labour-law consolidation since Independence. The four Labour Codes rationalise 29 central labour enactments and now form the core statutory framework governing wages, industrial relations, social security and occupational safety.

The four Codes came into force on 21 November 2025. Employers should therefore review legacy policies, contracts, wage structures, disciplinary processes, standing orders, contractor systems and statutory registers against the operative Code framework and applicable Central or State rules.

Overview of the Four Labour Codes

• Code on Wages, 2019
• Industrial Relations Code, 2020
• Code on Social Security, 2020
• Occupational Safety, Health and Working Conditions Code, 2020

1. Code on Wages, 2019 — Salary and Payroll Compliance

The Code on Wages consolidates the earlier law on payment of wages, minimum wages, bonus and equal remuneration and introduces a common statutory wage framework.

Uniform Definition of Wages

The Code contains a standard definition of “wages” that affects salary structuring, statutory contributions and several employment-cost calculations. Payroll structures should be reviewed against the statutory inclusion and exclusion rules rather than relying on historic CTC labels alone.

Minimum Wages and Floor Wage

Employers must track the applicable minimum-wage and floor-wage framework together with State-specific notifications and sectoral requirements.

2. Industrial Relations Code, 2020 — Workforce Management and Disputes

The Industrial Relations Code governs trade unions, negotiating unions and councils, standing orders, industrial disputes, strikes, retrenchment, lay-off and closure.

Standing Orders

Chapter IV of the Industrial Relations Code applies to industrial establishments in which 300 or more workers are employed, or were employed on any day during the preceding twelve months. Employers within the threshold should review the standing orders framework under the Industrial Relations Code and the 2026 Rules, including Model Standing Orders, certification, modification, misconduct and disciplinary procedure.

Retrenchment, Lay-off and Closure

The Code retains procedural safeguards and threshold-based requirements for larger establishments. Workforce restructuring should therefore be planned with reference to the applicable Chapter, worker count, notice, compensation and prior-permission requirements where attracted.

Fixed-Term Employment

Fixed-term employment is expressly recognised under the Code. Employers should ensure parity of statutory benefits and avoid using fixed-term structures as a device to defeat mandatory labour protections.

3. Code on Social Security, 2020

The Code on Social Security consolidates the central framework dealing with provident fund, employees’ state insurance, gratuity, maternity benefit, employee compensation and other social-security subjects, while also creating statutory architecture for gig, platform and unorganised workers.

Employers should review worker classification, contribution obligations, gratuity exposure, registration, record-keeping and contractor arrangements under the operative framework.

4. Occupational Safety, Health and Working Conditions Code, 2020

The OSH Code consolidates central legislation concerning workplace safety, health, working conditions, contract labour, inter-State migrant workers and related establishment obligations.

Major Compliance Areas

• registration and licensing where applicable;
• working hours and overtime;
• health, safety and welfare standards;
• contract-labour compliance;
• inter-State migrant-worker obligations;
• employment records and prescribed notices.

Implementation Status — 2026 Position

The four Labour Codes are no longer merely enacted legislation awaiting commencement. The Government of India brought them into force with effect from 21 November 2025. Central rules were subsequently notified in 2026, including the Industrial Relations (Central) Rules, 2026. State rules and the identity of the appropriate government remain important for establishment-specific compliance.

Businesses should therefore avoid relying on pre-2025 compliance notes that state that the Labour Codes have “not yet been implemented”. HR manuals, appointment letters, standing orders, wage structures, disciplinary systems and contractor documentation should be reviewed against the current operative framework.

Practical Employer Compliance Priorities

• review wage and salary structures;
• map worker and contractor classifications;
• review standing orders where the 300-worker threshold is met;
• update misconduct and domestic-inquiry procedures;
• review retrenchment, lay-off and closure processes;
• check social-security registration and contribution obligations;
• review contract-labour and workplace-safety documentation;
• update HR policies and statutory registers;
• train HR and operations teams on the operative Code framework.

Frequently Asked Questions

Are the four Labour Codes in force?

Yes. The Central Government brought the four Labour Codes into force with effect from 21 November 2025.

Do the Labour Codes apply to startups and MSMEs?

They may apply depending on the subject, establishment type, worker count, appropriate government and statutory threshold. Small size does not create a universal exemption from labour-law compliance.

When do standing orders become relevant?

Under the Industrial Relations Code, the standing-orders chapter applies to industrial establishments employing 300 or more workers, subject to the statutory framework and applicable rules.

Should employers continue using old standing orders and HR manuals without review?

No. Existing documents should be checked against the operative Labour Codes and rules, particularly where definitions, thresholds, procedure or statutory obligations have changed.

Conclusion

The Labour Codes have shifted from future reform to present compliance law. Employers should now treat Code alignment as a governance and risk-management exercise covering wages, industrial relations, standing orders, social security, safety and workforce documentation.

This article is for general legal information and does not constitute legal advice, advertisement or solicitation. Applicability depends on the establishment, appropriate government, sector, worker count and facts.