The Indian government has taken a pivotal step towards modernizing the nation's labour framework by officially notifying the Central rules under the four Labour Codes. This notification, effective May 8, 2026, enables the on-ground implementation of these comprehensive laws, which were initially passed by Parliament in 2019 and 2020.
For years, the implementation of these codes — the Code on Wages, 2019; the Occupational Safety, Health and Working Conditions Code, 2019; the Industrial Relations Code, 2020; and the Code on Social Security, 2020 — had awaited the framing and notification of specific rules. With these rules now in place, significant changes are set to impact employees and employers across various sectors.
What Are India's Four Labour Codes?
The four Labour Codes represent a monumental legislative effort to consolidate and streamline 29 existing Central labour laws, some of which were over a century old and suffered from overlapping provisions. The primary objective of these new codes is to align India's labour regulations with the demands of a modern economy, promoting ease of doing business while safeguarding worker rights.
Significance of the Rules Notification
While the four codes themselves were notified in November 2025, many of their provisions required the notification of detailed rules to become actionable. The Centre had previously released draft rules for stakeholder consultations, incorporating feedback before finalization. The recent notification means that nearly all provisions of these new labour laws are now legally enforceable.
Puneet Gupta, Partner, People Advisory Services -Tax, EY India, explained that the Central Rules for the Code on Wages, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code will primarily apply to establishments where the Central Government is the 'appropriate government'. This includes crucial sectors such as telecommunications, banking, insurance, mines, oil fields, major ports, and central public sector undertakings. In contrast, the Central Rules under the Code on Social Security have a broader application, extending to establishments operating across multiple states.
Key Provisions Under the New Rules
Code on Wages, 2019
- Minimum Wages: Prescribes the fixing of minimum wages and a national floor wage.
- Working Hours: Mandates a 48-hour cap on weekly working hours.
- Bonus: Places the onus for statutory minimum bonus for contract labour on the principal employer.
- Standardization: Introduces standardized formats for key registers and a formal nomination framework.
Occupational Safety, Health and Working Conditions Code, 2019 (OSHWC)
- Registration: Clarifies forms for registration and cessation of operations of units.
- Roles and Duties: Defines roles and duties for employers and employees, including annual health check-ups.
- Advisory Board: Notifies provisions related to the National Occupational Safety and Health Advisory Board.
- Migrant Workers: Establishes a portal for interstate migrant workers and addresses working hours, overtime, and compulsory issuance of appointment letters.
Code on Social Security, 2020
- Gig Workers: Clarifies procedures for the registration of gig and platform workers.
- Social Security: Details contributions for the Employees’ State Insurance (ESI) scheme and provisions for creche facilities.
Industrial Relations Code, 2020
- Dispute Resolution: Delegates power to Joint Secretary-level officers to examine applications concerning lay-offs, retrenchments, and closures in Central Government-governed establishments.
- Model Standing Orders: Notifies the Model Standing Orders under the Industrial Relations Code.
- Reskilling: Establishes the National Reskilling Fund.
What Employers and States Must Do Next
Employers operating under Central labour laws must now meticulously assess the new rules and ensure full compliance. However, since labour falls under the Concurrent List of the Constitution, both the Centre and individual States have the authority to enact their own laws and rules. Many states are yet to notify their respective rules. While employers await this clarity, the Central rules will serve as a crucial framework and reference for states as they develop their own regulations.