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First HR Consultant

New Labour Codes

India's Labour Law Transformation

The Government of India enacted four comprehensive Labour Codes to consolidate, simplify, and modernise India’s labour law framework. These Codes subsumed 29 Central Labour Acts into a single harmonised framework. All four Codes and their Central Rules came into force on 21 November 2025 (S.O. 5319(E)). State-specific Rules are being progressively notified — with Haryana, Maharashtra, and other industrial states having already notified their Rules in 2026.

Notified State Rules

Haryana Code on Wages Rules 2026 (Gazette 4 May 2026) | Maharashtra Code on Wages Rules 2026 (Gazette 28 April 2026) | Central Code on Wages Rules 2026 (8 May 2026)

Code on Wages, 2019

Consolidates: Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965, Equal Remuneration Act 1976

Key Provisions

Uniform definition of 'wages' across all industries

Floor wage concept — national minimum floor

Mode, time, and conditions of wage payment

50% wages rule — at least 50% of CTC must be 'wages'

Revised minimum wages mechanism

Overtime rate: 2x | Deductions: strictly limited

Industrial Relations Code, 2020

Consolidates: Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947

Key Provisions

Standing Orders: threshold 300 workers (was 100)

GRC (Grievance Redressal Committee): 20+ workers

Lay-off/retrenchment/closure: permission threshold 300 workers

Works Committee: 100+ workers

Fixed-Term Employment — statutory recognition with wage parity and pro-rata gratuity

Worker Re-skilling Fund: 15 days wages on retrenchment

Notified State Rules

Haryana IR Code Rules 2026 (Gazette 5 May 2026) | Maharashtra IR Code Rules 2026 (Gazette 28 April 2026) | Central IR Code Rules 2026 (8 May 2026)

Notified State Rules

Chhattisgarh OSH Rules (Notification No. F 10-21/2021/116) | Maharashtra OSH Draft Rules 2026 (May 2026) | Central OSH Rules 2026 (8 May 2026)

OSH&WC Code, 2020

Consolidates: Factories Act 1948, CLRA 1970, ISMW Act 1979, BOCW Act 1996, Mines Act 1952, Plantation Labour Act 1951, and 7 others (13 Acts total)

Key Provisions

Factory threshold doubled: 20 workers with power (was 10)

Appointment letter mandatory for every worker — Day 1

Safety Committee: 500+ workers | Safety Officer: 500+ workers

CF (Inspector-cum-Facilitator) — facilitation before prosecution

Single registration for all establishments

OSHMS (OSH Management System) — 100+ workers

Contractor licensing threshold: 50 workers (was 20) — 5-year validity

All-India contractor licence

Notified State Rules

Central Social Security Rules 2026 (8 May 2026) | Maharashtra Social Security Rules — draft | Haryana Social Security Rules 2026 (Gazette 7 May 2026)

Code on Social Security 2020

Consolidates: EPF&MP Act 1952, ESI Act 1948, Gratuity Act 1972, Maternity Benefit Act 1961, Employee Compensation Act 1923, and others

Key Provisions

Gig workers and platform workers: coverage extended

ESIC: coverage threshold ₹21,000/month | Contribution period principle

BOCW Welfare Cess: 1% of construction cost

Gratuity ceiling: ₹20 lakhs | FTE: pro-rata gratuity

Maternity: 26 weeks (first 2 children) | 12 weeks thereafter | Commissioning mothers

Uniform definition of 'wages' for social security computation