**Executive Summary**
This document outlines the implementation of the four Labour Codes (Code on Wages, 2019; Code on Social Security, 2020; Industrial Relations Code, 2020; and Occupational Safety, Health and Working Conditions Code, 2020) effective from November 21, 2025. The document details key features of the codes, including universalisation of minimum wages, promotion of gender neutrality, social security for all workers, and safety standards. The Lok Sabha posed questions regarding the features, objectives, and implementation of the codes, particularly in tribal areas of Odisha.
**Key Points / Main Content**
**General Provisions:**
* The four Labour Codes implemented nationwide, including Odisha, aim to simplify compliance through single registration, licensing, and return processes.
* The codes reduce multiple definitions and authorities, facilitate technology use, and enhance transparency and accountability.
* The codes strengthen worker protection and promote workforce formalisation.
* The Shram Suvidha Portal (SSP) serves as a unified web portal for online registration, inspection reporting, and annual return submissions, improving ease of doing business.
**Code on Wages 2019:**
* Universalizes minimum wages across all employments.
* Establishes a statutory 'Floor Wage' to be notified by the Central Government.
* Promotes gender neutrality and prohibits discrimination in recruitment and wage payment.
* Ensures timely payment of wages to all employees.
* Includes allowances exceeding 50% as part of wages, enhancing maternity benefits, gratuity, EPF, and EPS contributions.
**Industrial Relations Code 2020:**
* Introduces Statutory 'Negotiating Union' and 'Negotiating Council' to facilitate collective bargaining.
* Establishes a Two-Member Industrial Tribunal for faster resolution of industrial disputes.
* Ensures equal representation of employers and employees in Grievance Redressal Committees.
* Introduces Fixed Term Employment (FTE) with benefits at par with permanent workers, including proportionate gratuity after one year of service.
* Rationalizes penalties for violations based on the severity of the offense.
**Code on Social Security, 2020:**
* Extends social security coverage to all workers, including unorganized, gig, and platform workers.
* Introduces definitions for aggregator, gig worker, and platform worker.
* Provides universal ESIC coverage, extending pan-India in notified districts/areas and voluntarily to establishments with less than 10 employees.
* Mandatory ESIC coverage for establishments with single employees in hazardous processes.
* Extends universal EPFO coverage to establishments with 20 or more employees, removing the existing schedule of industries provision.
**OSH & WC Code 2020:**
* Applies occupational safety, health, and welfare standards universally to establishments with 10+ workers, and even to establishments with one employee in hazardous occupations.
* Formalizes employment through mandatory issue of appointment letters.
* Requires employers to provide free annual health check-ups for employees above a specified age.
* Expands the definition of Inter-State Migrant Workers to include contractor-employed and self-migrated workers, entitling them to travel allowance and benefit portability.
* Allows women to work in all establishments and types of work, including night shifts, subject to their consent and safety.
**Impact Analysis**
**Employers:**
**Impact**
Employers are impacted through changes to the wage structures, safety regulations, social security contributions and industrial relation frameworks that they must adhere to.
**Action Required**
Employers must ensure compliance with the new Labour Codes, including updated wage policies, adherence to safety standards, provision of social security benefits, and implementation of formalized employment practices.
**Employees (including unorganized, gig, and platform workers):**
**Impact**
Employees benefit from universal minimum wage standards, enhanced social security coverage, improved safety and health regulations, and formalized employment conditions.
**Action Required**
Employees should understand their rights and entitlements under the new Labour Codes and ensure that their employers are compliant with the regulations.
Key Entities Referenced
Four Labour Codes: A set of labor laws including the Code on Wages, the Code on Social Security, the Industrial Relations Code, and the Occupational Safety, Health and Working Conditions Code
Code on Wages, 2019: One of the four Labour Codes focused on wage-related provisions
Code on Social Security, 2020: One of the four Labour Codes focused on social security benefits
Industrial Relations Code, 2020: One of the four Labour Codes focused on industrial relations
Occupational Safety, Health and Working Conditions Code, 2020: One of the four Labour Codes focused on occupational safety, health, and working conditions
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 254
TO BE ANSWERED ON 02.02.2026
IMPLEMENTATION OF FOUR LABOUR CODES
254. SHRI JAGDAMBIKA PAL:
DR. RAJESH MISHRA:
SHRI BALABHADRA MAJHI:
SMT. KAMALJEET SEHRAWAT:
SHRI VIJAY KUMAR DUBEY:
SHRI RAHUL SINGH LODHI:
SHRI MANOJ TIWARI:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)the details of the key features and objectives of the four Labour
Codes, brought into effect from 21 November 2025, particularly
with reference to workers and employers in the tribal areas of
Odisha;
(b)the details of the simplified compliance mechanisms introduced
under the said Labour Codes, such as single-window filing, web-
based inspections and uniform definitions for workers and
establishments;
(c)the manner in which the mechanisms are being implemented in the
tribal-dominated areas of Odisha;
(d)whether the Government has devised any monitoring or evaluation
framework to assess the outcomes of the implementation of the
said Labour Codes including their impact on ease of doing
business, workplace safety and formalisation of the workforce
particularly in the tribal areas of Odisha; and
(e)if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (e): The Central Government has implemented the four Labour
Codes viz; the Code on Wages, 2019, the Code on Social Security,
2020, the Industrial Relations Code, 2020 and the Occupational
Safety, Health and Working Conditions Code, 2020 across the
country, including Odisha, w.e.f. 21.11.2025. The four Labour Codes
Contd..2/-:: 2 ::
provide for single registration, licencing and return, reduce
multiplicity of definitions & authorities, facilitate use of technology,
bring transparency & accountability in enforcement. Simultaneously,
it strengthens the protection available to workers, including
unorganized workers and promotes formalisation of workforce.
Further, the Shram Suvidha Portal (SSP) under Ministry of
Labour and Employment acts as a single unified web portal for online
registration of units, reporting of inspections and submissions of
annual returns, thereby improving ease of doing business, reducing
delays and enhancing access and transparency. The portal also
captures comprehensive sector/industry-wise and State-wise data
relating to units registering on the portal, their compliance reporting
status, and submission of statutory returns.
The following are the salient features of the Labour Codes:
Code on Wages 2019:
➢ Universalisation of minimum wages to all employments as against
scheduled employment in the previous Act.
➢ ‘Floor Wage’ has been made Statutory which will be notified by
Central Government. Minimum rates of wages fixed by the
appropriate Government shall not be less than floor wage.
➢ Promote gender neutrality and prohibit discrimination in
recruitment and wage payment, including transgender.
➢ Timely payment of wages to all employees.
➢ Allowances exceeding 50% made part of wages which will
enhance maternity benefits, gratuity, Employees Provident Fund
(EPF), Employees Pension Scheme (EPS) Contribution, etc.
Industrial Relations Code 2020:
➢ Statutory ‘Negotiating Union’ and ‘Negotiating Council’ to facilitate
collective bargaining.
➢ Two-Member Industrial Tribunal as against one member for speedy
disposal of industrial disputes. Equal representation of employer
and employee in Grievance Redressal committee.
➢ Fixed Term Employment (FTE) introduced where an employee gets
all the benefits at par with permanent worker. Proportionate
gratuity on completion of 1 year of service.
➢ Penalties for violations rationalized and made commensurate with
gravity of offence.
Contd..3/-:: 3 ::
Code on Social Security, 2020:
➢ Social Security cover to all workers including unorganised
workers, Gig & Platform workers.
➢ To cater to new forms of employment, definitions of aggregator,
gig worker, platform workers introduced.
➢ Universal coverage of Employees’ State Insurance Corporation
(ESIC), extended pan-India against in notified districts/areas at
present.
➢ ESIC benefits extended to establishments with less than 10
employees on voluntary basis.
➢ Mandatory ESIC coverage to establishments employing even single
employee, involving hazardous process.
➢ Universal coverage of Employees’ Provident Fund Organization
(EPFO), now applies to all establishments employing 20 or more
employees. The existing provision regarding schedule of industries
has been removed.
OSH & WC Code 2020:
➢ The Code provides for universal application of occupational safety,
health and welfare standards in all establishments having 10 or
more workers and even for establishment with one employee,
carrying out hazardous or life-threatening occupations.
➢ Formalization of employment through mandatory issue of
appointment letter.
➢ Employer to provide free of cost annual health check-up for
employees above the specified age.
➢ Definition of Inter-State Migrant Worker expanded that includes
migrant workers employed by contractor, and also self-migrated
workers. They are entitled for (a) annual lump-sum travel
allowance, (b) portability of benefits.
➢ Women workers are allowed to work in all establishments, for all
types of work including during night subject to their consent and
safety.
*****