Labour codes to simplify laws & expand social security coverage

THE MINISTRY OF Labour and Employment has announced the implementation of the four Labour Codes with effect from November 21 2025.The rollout of new Labour Codes represents a path-breaking policy reform to modernise the extant labour laws and protect the vulnerable sections of the workforce, which typically get excluded from the social security net.

- DIVYA BAWEJA

The Labour Codes reforms are driven by three key objectives, i.e. simplifying compliance, streamlining enforcement and modernising outdated laws.

By consolidating and rationalising 29 central legislations into four comprehensive codes, viz. the Code on Wages, 2019; the Code on Social Security, 2020; the Industrial Relations Code, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — the government has sought to create a unified and coherent legal framework that replaces the earlier fragmented and overlapping statutes and drives labour reforms for Aatmanirb-har Bharat. The codes emphasise uniform definitions (such as “wages,” “employee,’ and “establishment”), harmonised compliance mechanisms, and a technology-driven approach to registration, inspection, and reporting. This shift is not merely administrative; it signals a philosophical change. Where the older laws were enacted more for factory floors and permanent employees, the new codes extend protections to a broader spectrum — including gig workers, platform workers, fixed-term employees, dock workers, plantation workers, mine workers, etc. and those working under new-age digital arrangements.

The code on Social Security, 2020, is particularly noteworthy. Until now, workers earning through apps or digital platforms existed in a regulatory grey zone — neither being considered as traditional employees nor self-employed entrepreneurs. The code on Social Security, 2020, bridges this gap by defining “gig” and “platform” workers (i.e. those driving cabs for app-based aggregators, delivering food and groceries, or offering freelance digital services) for the first time. This recognition lays the foundation for social protection schemes that address the realities of today’s fluid labour market.