For more updates follow Grant Thornton Bharat on WhatsApp
On 21 November 2025, the Government of India took a historic step by implementing the long-awaited four Labour Codes — Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020).
This landmark reform comes nearly five years after their initial introduction and represents a major overhaul of India’s labour governance framework. By consolidating 29 existing labour laws into a simplified and unified structure, these Codes aim to enhance regulatory clarity, improve compliance efficiency, and address evolving workforce dynamics. The move underscores the government’s commitment to modernising labour regulations, ensuring better protection for workers while enabling ease of doing business for employers across sectors.
With the notification on 21 November 2025, the uncertainty surrounding the enforcement of the Labour Codes has now been resolved. Consequently, the substantive phase begins — encompassing transition, interpretation, formulation of rules, development of schemes and standards, and their effective implementation at the ground level.
Amends and consolidates the laws relating to wages and bonus and matters connected therewith or incidental thereto
Seeks to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors and for other incidental or related matters
Consolidates and amends the laws relating to trade unions, conditions of employment in industrial establishments, investigation and settlement of industrial disputes and for all other incidental or related matters
Focussed on consolidating and amending the laws regulating the occupational safety, health and working conditions of the persons employed in an establishment and for all other incidental or related matters
Industrial Relations Code, 2020 and Occupational Safety, Health and Working Conditions Code, 2020 have been implemented in its entirety.
The Code on Social Security, 2020 has been brought into effect, with certain exclusions, including the non-repeal of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
The Code on Wages, 2019 has also been implemented, with certain exclusions related to the constitution of the Central Advisory Board.
|
Payroll
|
|
|
HR function
|
|
|
Financial impact
|
|
|
Policies
|
|
|
Manpower composition review
|
|
Transitioning to a new legislative framework is not a one-time activity but a journey. At Grant Thornton Bharat, we are well-equipped to assist our clients as we navigate this legislation change, which will impact employers across industries.
A dedicated project manager who will act as your single point of contact
Ex-regulators from EPFO empanelled with us to cater to clients’ requirements
Well-defined communication protocols to provide agile and responsive services
Ensure timely and robust reporting for swift management decision making
We have a team of committed professionals, comprising experienced CAs, Lawyers, and Company Secretaries, with expertise across Payroll, Tax, Labour laws, Company Law and Regulatory domains to help us cover all aspects of the engagement.
We 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.
The move highlights the government’s commitment to modernising labour regulations
Labour Law Insights January 2026 provides a comprehensive roundup of recent labour law developments, EPFO and ESI notifications, state-specific rule changes, compliance guidance and strategic implications for employers and HR leaders.
Labour Codes progress, state law updates, EPFO and ESI changes shaping employer compliance.
The four Labour Codes were announced in November replacing the earlier 29 Labour laws. This is a historical announcement and set to change the Labour Law reforms. We have shared the details and analysis of these path-breaking Labour codes in our November 2025 edition of Labour Law Insights. The edition also covers our regular labour law releases in various states, EPFO updates, and important judgements.
