Starting November 21, 2025, India is set to transform its workforce landscape with four pioneering labour codes. These reforms mandate appointment letters for every worker, ensuring transparency and security. Fixed-term employees will benefit from gratuity payouts after completing one year, while women will enjoy the option of night shifts, fostering inclusivity.
On November 21, 2025, the Indian government notified four new labour codes which are now incorporated into the existing labour law. These four codes include 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.
According to Anshul Prakash, Partner at Khaitan & Co, this was “a moment long overdue. The face of labour reforms has seen the light of the day when Four Labour Codes, that were assented to by the President of India nearly 6 years ago, have been given the force of law as of today (November 21). Part implementation of Code on Wages and Code on Social Security are on expected lines.”
Among the multiple changes in the new law, some of them which stand out are shorter gratuity benefits for fixed term or contractual employees, free annual health check-up for certain employees, ESIC coverage and benefits, among others.
According to Prakash from Khaitan & Co, all employees are engaged under a contract only.
Prakash says: “However, for fixed term...
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