India's Labour Codes Reform: A Leap Towards Efficiency and Fairness

The Occupational Safety, Health, and Working Conditions Code, 2020, simplifying India's complex labour laws, becomes effective November 2025. By consolidating 13 central laws into comprehensive legislation, it aims to enhance transparency, safeguard worker rights, and promote business ease. Modernizing labour regulations seeks to boost India's economic growth and workforce inclusivity.

In a historic development, the Government of India announced the implementation of four pivotal Labour Codes, including the Occupational Safety, Health and Working Conditions Code, 2020, effective from November 21, 2025. This significant move aims to streamline and simplify the intricate web of existing labour laws by consolidating 13 Central Labour laws into a single, comprehensive framework.

According to the central government, these reforms enhance transparency, prioritize worker welfare, and foster a business-friendly regulatory environment. The newly enacted Code outlines a dual focus: protecting worker rights and ensuring safe working conditions while encouraging economic growth and employment, thereby aligning with India's vision of inclusive and sustainable development.

The Code also introduces streamlined compliance measures such as single registration, electronic filings, and time-bound approvals. Emphasizing job formalization, it mandates appointment letters for employees, specifying details like wages and social security. Additionally, the Code reduces the work eligibility for paid leave from 240 to 180 days and provides regulatory flexibility regarding working hours and overtime.

(With inputs from agencies.)