The Government of India has announced that the four Labour Codes namely, – the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 are being made effective from 21st November 2025, rationalising 29 existing labour laws.
Under the new labour codes, the government aims to improve things for the inter-state migrant workers through schemes like Garib Kalyan, delivery of free food grains to the homes, etc. Earlier only workers appointed by a contractor were recognised as Inter-State Migrant Workers. However, under the new provisions of the Code, workers can be Aatmanirbhar as they can now register themselves as Inter-State Migrant Workers on the national portal. By this provision, the worker would get a legal identity which would enable them to get benefits of all social security schemes. In addition, a provision has been made for employers to provide travelling allowance annually to an Inter-State Migrant Worker for undertaking a to-and-fro journey to his native place.
Through the Social Security Code, the government aims to ensure free treatment for workers of all industries including the unorganized ones. The code also aims to expand hospitals, dispensaries and branches upto district level. This facility is to be increased from 566 districts to all the 740 districts of the country.
The new Industrial Relations Code states that in case of a job loss, a worker will get benefit under the Atal Bimit Vyakti Kalyan Yojna. Under the Atal Bimit Vyakti Kalyan Yojna, a worker of organized sector who loses his job gets financial aid from the Government. This is a type of unemployment allowance, the benefit of which is admissible to the workers covered under the ESI Scheme. The code furthers that at the time of retrenchment a worker would be provided 15 days’ wages for re-skilling. The wages would be credited directly into the bank account of the worker so as to enable him to learn new skills.
The Ministry of Labour and Employment, in an official statement said that by modernising labour regulations, enhancing workers’ welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat.
While most major economies have updated and consolidated their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 Central labour laws.
These restrictive labour frameworks threw challenges at the Indian workforce ecosystem to maintain parity with the changing needs as per time. The ministry stated that the implementation of the four Labour Codes addresses this long-pending need to move beyond colonial-era structures and align with modern global trends.
Commenting on the development, Prime Minister Narendra Modi said, “These reforms are very pro-worker. They are now entitled to all benefits and social security even if hired for fixed term. The labour reforms will help create significant employment while also protecting the worker by ensuring minimum wage reforms, provision for social security for workers in the informal sector, and minimising government interference. It will ensure timely payment of wages and give priority to occupational safety of the workers, thus contributing to a better working environment.”
