The Labour Codes Are Here: Five Questions Every Employer Should Ask

India's four Labour Codes, the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code, were notified effective 21 November 2025. They replace 29 central labour laws.

For many organisations, the change is still being absorbed. State rules are at different stages across India, and the Ministry of Labour and Employment continues to issue clarifications. Waiting for complete clarity, however, is not a compliance strategy. Here are five questions worth asking now.

1. Does our salary structure match the new definition of "wages"? The Codes introduce a uniform definition of wages. It can affect how gratuity, provident fund and other benefits are calculated. Review your salary components early.

2. Are our appointment letters and HR policies up to date? Contracts, leave, working hours and termination provisions written under the old laws may no longer reflect current requirements.

3. Who in our organisation is covered, and how? The Codes bring changes to coverage, including for fixed-term employees, contract workers, and gig and platform workers.

4. What do the rules in our state say? Labour is a shared subject between the Centre and the states. Your obligations depend on the rules notified where you operate, so check each location separately.

5. Who owns this transition? Labour Code compliance touches HR, payroll, finance and legal. Without a clear owner, important changes fall between departments.

Compliance is not only about avoiding penalties. Clear, fair and well-understood employment practices build trust between employers and employees, and that is a foundation for Equality of Opportunity at work.

4CODES, the HR and labour-law compliance initiative of Shaurya4equality Pvt Ltd, helps institutions understand these requirements and translate them into practical policies, processes and responsibilities.

Want to review where your organisation stands? [Contact S4E LIFE].

This article is general information as of October 2026, not legal advice. Check the current notifications for your state.