We recently hosted a webinar titled ‘Decoding Labour Codes: The dawn of a new era’ on the new Labour Codes, which came into effect on 21 November 2025. Our experts shared practical guidance on proactive worker classification, compliance with new wage definitions, documentation for social security benefits, digital readiness for streamlined reporting, and the importance of strategic workforce planning across HR, finance, and legal teams.

Key takeaways

  • New Labour Codes implemented: Effective 21 November 2025, 29 existing labour laws have been consolidated into four Labour Codes, focusing on simplified compliance and enhanced employee welfare.
  • Uniform wage definition and financial impact: A standardised wage definition with a 50% cap on exclusions will influence social security contributions, gratuity calculations, and provisioning for fixed-term employees.
  • Worker classification and contract labour restrictions: Employers must classify workers vs. employees proactively, granting workers rights to overtime and leave encashment. Contract labour is prohibited in core activities (with exceptions), and principal employers remain accountable for contractor payments and welfare.
  • Social security expansion and exit settlements: Platform workers now receive social security benefits - a global first after the US. Additionally, full and final settlements must be processed within two working days of employee exit.
  • Compliance readiness and pending notifications: While the Provident Fund contribution ceiling (INR 15,000 per month) remains unchanged, organisations should prepare for pending central/state notifications, harmonisation with the Shops & Establishment Acts, and transition strategies under the new Codes.
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Speakers

  • Akhil Chandna
    Partner and Global People Solutions Leader
    Akhil Chandna
    Grant Thornton Bharat
  • Rajashree Sarna
    Partner, Global People Solutions
    Rajashree Sarna
    Grant Thornton Bharat
  • Ankur Agrawal
    Director, Global People Solutions
    Ankur Agrawal
    Grant Thornton Bharat
  • Shri R G Meena
    Consultant & Dy. Chief Labour Commissioner (Retd.), Ministry of Labour & Employment
    Shri R G Meena
    Government of India