New Delhi [India], November 22 : Industry leaders have welcomed the government's decision to enforce the four Labour Codes into effect from 21 November 2025, calling it a major step toward simplifying and modernising India's labour laws.
According to the Ministry of Labour & Employment release, these Codes replace 29 older labour laws that were written during the pre-Independence and early post-Independence era (1930s-1950s), when the nature of work and the economy were very different.
Industry observers believe the implementation of these codes marks the beginning of a crucial transition phase for India's workforce. The four Labour Codes: the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code, aim to bring India's workforce policies in line with global standards.
Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), described the reform as "a historic milestone for India's labour landscape." He said the consolidation of 29 diverse laws into four codes "marks a transformative leap toward a modern, simplified and future-ready labour ecosystem." Banerjee added that the move ensures "better wages, stronger social security, enhanced workplace safety and a more predictable regulatory environment for both workers and industry." According to him, a resilient workforce and progressive labour framework are essential to India's growth story, and this step will strengthen the path toward a more inclusive and self-reliant economy.
Lokesh Gulati, Partner at PwC India, said the unified codes "modernise India's labour framework" and "simplify compliance while reducing regulatory friction." He explained that the changes "promote formalisationkey for attracting investment and scaling operations." Gulati added that the reforms "align with ESG goals, strengthening India's competitive and responsible economy." He noted that the older laws would remain in place until rules under the new framework are finalised, ensuring a smooth transition.
From the global perspective, Gilbert F. Houngbo, Director-General of the International Labour Organization (ILO), expressed optimism about the development. In a post on X, he said, "Following with interest developments of India's new Labour Codes announced today, including on social protection & minimum wages. Social dialogue among govt, employers & workers will remain essential as reforms are implemented to ensure they're positive for workers and business."
These codes promise uniform minimum wages, mandatory appointment letters for workers, timely payment of wages, and expanded social security benefits for gig, platform, and migrant workers. Women are now allowed to work night shifts with proper safety measures, and workers over 40 will receive free health check-ups. These provisions, experts say, could help formalise the workforce and boost investor confidence.
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