4 labor codes, 15 types of employees - who gets what? Salary, holidays, conditions - how will they change your life?
Imagine working in a system with 29 different laws. Each task requires a different rule, each rule requires a different document, and each document requires a different office. If you're an employee, you don't even know which of your rights is hidden in which rule. And if you're an employer, the burden of regulations is so overwhelming that more time is spent on paperwork than on running your business.
The country was operating on this model—many laws written before independence, many from the early post-independence era—that had no direct connection to today's digital and modern economy.
Then the government took the biggest decision, repealing all 29 laws and implementing just four labor codes. This isn't just a change, but a rebuilding of the labor system. A new framework that makes things easier, clearer, and safer for both workers and industry.
These four new codes have come into effect from November 21, 2025:
Wage Code, 2019
Industrial Relations Code, 2020
Social Security Code, 2020
Occupational Safety, Health and Working Conditions Code, 2020
Now let's begin the story, explaining each point one by one...
Old system vs. new system: What's the real change?
1) Now every worker will receive an appointment letter—previously optional, now mandatory.
Previously, a joining letter was merely a formality. Now it's a legal right. This will ensure transparency in employment and a clear job record.
2) For the first time, minimum wage is guaranteed to all workers.
Previously, this was only applicable to select industries. Now every employee is entitled to it.
3) Social security for all workers—including gig and platform workers.
Previously, they had no protection. Now they will receive PF, ESIC, life insurance, and other benefits.
4) Free health checkups for employees aged 40+
This wasn't mandatory before.
5) Paying salaries on time is now a legal requirement.
This will increase job stability and trust.
6) Women are allowed to work on night shifts and in all jobs.
Previously, this was a restriction in many places.
Now, with consent and security measures in place, they can work in all roles.
7) ESIC coverage is nationwide.
Previously, it was only applicable in select areas.
8) Multiple registrations and licenses are now replaced by a single system.
Now, one registration, one return, one license.
Now, let's see what benefits 15 types of workers will receive.
1) Fixed Term Employees (FTE)
All benefits are available to permanent employees
Gratuity in just 1 year
Medical and social security benefits
Promoting direct hiring
2) Gig workers (Uber, Swiggy, Zomato, delivery, etc.)
Recognized in law for the first time
Aggregators will have to contribute 1–2%
Universal Account Number – Benefit portable
Benefits will not stop even if you change states
3) Contract employees
Entitlement to gratuity
Health and social security benefits
Equal rights for fixed-term employees
4) Women
Equal pay for equal work
Night shifts allowed
Safety measures mandatory
Women's representation in grievance committees
In-laws added to the family definition
5) Young employees
Guaranteed minimum wage
Appointment letter mandatory
Pay during leave
Better job security
6) MSME employees
Minimum wage
Timely pay
Standard working hours
Double Overtime
Facilities like drinking water and rest areas
7) Beedi and cigar workers
8–12-hour shifts
Double overtime
Right to a bonus
Timely pay
8) Plantation workers
ESIC medical facilities
Children's education
Chemical safety training
Safety equipment mandatory
9) Digital and audio-visual workers
Journalists, stunt artists, dubbing artists
Appointment letter
Timely pay
Double overtime
10) Mine workers
Free annual health checkup
8–12-hour shifts
New safety standards
An accident during travel will also be considered job-related
11) Hazardous industry workers
On-site safety committee
Annual health checkup
Equal opportunity for women
Safety guidelines mandatory
12) Textile sector employees
Equal pay
All benefits for migrant workers
Double pay for overtime
Claims for pending dues up to 3 years
13) IT and ITeS employees
Pay by the 7th date
Night shifts for women
Timely resolution of disputes: Settlement
Social Security Benefits
14) Dock Workers
Formal Identification
PF-Pension-Insurance
Annual Health Checkup
Medical and Safety Facilities
15) Export Sector Employees
Gratuity, PF, Social Security
Option to Leave After 180 Days
Timely Salary
Opportunity for Women in Night Shifts
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
