New Labour Codes: Legal Framework, Financial Impact & Practical Implementation

The implementation of the Four New Labour Codes with effective from 21st November 2025 marks a major step in consolidating 29 existing laws and modernising India’s labour law framework. As the transition to this new regime, it is important for organisations and professionals to understand both the legal foundations and the practical implications arising from these changes.

The New Labour Codes comprise the following four enactments:

1. The Code on Wages, 2019
2. The Industrial Relations Code, 2020
3. The Code on Social Security, 2020
4. The Occupational Safety, Health and Working Conditions Code, 2020