The 4 New Labour Codes in India: A Practical Overview for Employers
Compliance• 4 min read
India’s labour law framework had become complex over time, creating significant compliance burdens through multiple registrations, licences, and returns. To streamline this, the Government of India has consolidated 29 Central Labour Acts into four unified Labour Codes.
For employers, this means clearer rules, simpler procedures, and reduced compliances. 1,228 sections have been streamlined into 480, and the number of registers to be maintained has reduced from 84 to just 8.
1. The Code on Wages, 2019
This code amalgamates 4 wages and payment-related laws. It ensures universal minimum wages, timely payment of wages, and outlaws gender-based discrimination in hiring and pay. Employers must now issue wage slips to all employees and settle final dues within two working days of an employee's exit.
2. The Industrial Relations Code, 2020
Consolidating three central legislations, this code rationalises provisions related to trade unions and the settlement of industrial disputes. Key highlights include the mandatory formation of Grievance Redressal Committees (GRC) for establishments with 20 or more workers, and standardized rules for lay-offs, retrenchment, and closures.
3. The Occupational Safety, Health & Working Conditions Code, 2020
The OSH&WC Code simplifies 13 Central Labour laws into a single comprehensive legislation. It promotes the ease of doing business through single registrations and all-India single licences. Employers must provide annual health check-ups free of cost, crèche facilities (for 50+ employees), and strict safety safeguards.
4. The Code on Social Security, 2020
Subsuming 9 labour laws, this code expands social security coverage. The threshold for EPF applies uniformly to establishments with 20 or more employees, while ESI applies to those with 10 or more. The code also officially introduces gig and platform workers into the social security fold for the first time.
Next Steps
Transitioning to the new codes requires an overhaul of existing HR policies, payroll engines, and compliance trackers. Modern HRMS platforms like StaffSynchr natively support these unified codes—from single-click statutory reports to 2-day exit settlements.