Comprehensive Update on India’s Four Labour Codes – Part 2

Labour codes likely to be fully operational from April 1, govt to pre-publish draft rules soon

The government has announced that the four landmark labour codes will be fully operational from April 1, 2026 with draft rules to be pre-published soon for public consultation.

What’s changing

• The new regime brings together four major codes: Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020 and Occupational Safety, Health and Working Conditions Code, 2020, replacing 29 existing labour laws.
• The government will issue draft rules soon, followed by a 45 days public consultation window before final notification, a step required for operationalisation.
• Under the new framework:
  • Working hours remain 8 hours/day, with provision for overtime.
  • Mandatory appointment letters for workers.
  • Free health check-ups for workers above 40 age years.
  • Provisions like equal pay for equal work and equal opportunity for women, including for shift work.
  • A major push for social security, the government targets extending coverage to 100 crore workers by March 2026 (from 94 crore earlier).

Why this matters

• The new labour codes aim to modernise India’s labour-regulatory framework simplifying compliance, reducing fragmentation, and making laws more future-ready for evolving employment patterns (gig economy, contract labour, etc.).
• For businesses: streamlined regulations, fewer overlapping laws, clarity in compliance and more flexibility in workforce management.
• For workers: enhanced protections, better social security, transparent working conditions, and improved benefits, especially for informal, gig or contract workers historically outside the coverage net.

What to do now

• Monitor release of draft rules (expected soon).
• Employers should start reviewing their HR policies to align with new codes (appointment letters, overtime policies, worker benefits, health check-ups, etc.).
• Workers and labour-rights groups should keep an eye on the public consultation period to provide feedback.

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