India’s Parliament just overhauled and simplified the country’s labor law regime by consolidating it into four labor codes. The changes, which took effect November 21 will harmonize definitions, expand worker protections, and streamline administrative processes. However, many provisions depend on yet‑to‑be‑issued state rules, leaving employers to navigate a transitional period with uncertainty about how they should comply. Here’s what you need to know about the new code and steps to take in response.
Background
To modernize its labor law framework, Parliament consolidated 29 statutes into four comprehensive labor codes:
We cover each of the four codes in more detail in the sections below.
The updates set uniform definitions for wages, employees, and establishments, among other key provisions. Notably, the codes now formally recognize gig and platform work, and regulate fixed‑term employment. Penalties have also been substantially increased, and the new laws introduce joint liability for unpaid dues in business transfers.
Current Status and Transition
Although the four codes have been enacted and notified by the central Indian government, implementation remains uneven. A recent press release from the central government clarifies that the existing labor laws will continue to apply during this transitional...
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