Key codes to simplify labour laws come into force; PM Modi hails move

In a historic decision, the Centre has announced that the four Labour Codes – the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020– are being made effective from today, rationalising 29 existing labour laws.

Prime Minister Narendra Modi, in a social media post on ‘X’, described the implementation of the four Labour Codes as one of the most comprehensive and progressive labour-oriented reforms since Independence. ”It greatly empowers our workers. It also significantly simplifies compliance and promotes Ease of Doing Business,” he said.

Advertisement

By modernising labour regulations, enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work, this move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat,” the Ministry of Labour & Employment said.

Many of India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different.

While most major economies have updated and consolidated their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 Central labour laws.

These restrictive frameworks struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty and increasing compliance burden for both workers and industry.

The implementation of the four Labour Codes addresses this long-pending need to move beyond colonial-era structures and align with modern global trends.

Together, these Codes empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work — paving the way for a more resilient, competitive and self-reliant nation.

The ministry said that in line with the wide-ranging consultations carried out during the drafting of the Labour Codes, the government will likewise engage the public and stakeholders in the framing of the corresponding rules, regulations, schemes, etc, under the Codes.

During transition, the relevant provisions of the existing labour Acts and their respective rules, regulations, notifications, standards, schemes, etc will continue to remain in force.