Covering News & Updates from 21st Nov to 28th Nov 2025.
This week marks a historic turning point for Indian HR professionals. After years of waiting, the Government of India has officially notified and implemented the four new Labour Codes, fundamentally reshaping our compliance landscape.
Here is your executive summary of the critical changes that came into effect this week.
1. Historic Shift: 4 New Labour Codes Effective from Nov 21
In a landmark move, the Ministry of Labour & Employment announced that all four Labour Codes -Code on Wages, IR Code, Social Security Code, and OSH Code are effective from November 21, 2025. These codes replace 29 outdated central labour laws.
Key Immediate Changes for HR:
Universal Minimum Wage: Every employee in India now has a statutory right to minimum wages, regardless of sector.
The "50% Rule" for Salary: Basic Pay + DA + Retaining Allowance must equal at least 50% of the total CTC. This structural change will increase PF and Gratuity liability for employers but may reduce take-home pay for employees.
Fixed-Term Gratuity: Fixed-Term Employees (FTE) are now eligible for gratuity after just 1 year of service (reduced from 5 years).
Digitization: A new "Single Registration, Single License, Single Return" system is now in effect to ease compliance burden.
HR Takeaway: You must immediately review your salary structures (CTC breakup) and employment contracts to ensure they comply with the new "Wages" definition.
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2. Trade Unions Announce Nationwide Protest
While the industry has welcomed the codes for "Ease of Doing Business," major Trade Unions including INTUC, AITUC, and CITU have voiced strong opposition.
The Conflict: Unions have labeled the codes "anti-worker," citing concerns over easier retrenchment rules (companies with up to 300 workers can now lay off staff without government permission).
The Action: A nationwide protest was called on November 26, 2025, demanding the withdrawal of the codes.
HR Takeaway: Expect potential unrest or queries from unionized staff members. Open communication about how these codes benefit workers (better social security) will be key to maintaining industrial peace.
3. Gig Workers Get Legal Recognition & Social Security
For the first time in history, India's Gig and Platform Workers (like delivery partners and freelancers) are legally recognized under the Code on Social Security, 2020.
The Change: Aggregators (like Uber, Zomato, etc.) must now contribute 1-2% of their annual turnover to a dedicated Social Security Fund for these workers.
The Benefit: Gig workers will now have access to health, maternity, and disability benefits via a new Aadhaar-linked Universal Account Number (UAN).
HR Takeaway: If your company hires gig workers or freelancers, you need to register them on the upcoming national portal to ensure compliance.
4. Women Allowed in Night Shifts (Across All Sectors)
The OSH Code, 2020 has removed restrictions on women working night shifts, effective immediately.
The Rule: Women can now work in any establishment (including factories and mines) between 7 PM and 6 AM.
The Condition: Employers must obtain written consent from the female employee and ensure adequate safety, shelter, and transportation.
HR Takeaway: Update your shift policies. If you plan to roster women for night shifts, ensure your transport and safety protocols are audit-ready to avoid heavy penalties.
5. Mandatory Annual Health Check-ups
Under the new OSH Code, employers in certain sectors are now mandated to provide free annual health check-ups for employees.
The Requirement: Employers must provide free annual health check-ups for all employees above a certain age (typically 45+ years, though specific rules may vary by state) to promote preventive healthcare.
HR Takeaway: Budget for this compliance cost in your upcoming financial planning for 2026.
Quick Bites: Other HR News
The "2025 Layoff Wave" Continues: Reports indicate a "structural shift" in hiring. Companies are moving away from hiring "generalists" and are specifically hiring for AI-integration roles, widening the skills gap. Focus on reskilling your current workforce.
New Gratuity Rules for "Fixed Term" Employees: Confirmed! Fixed-Term Employees (FTEs) are now eligible for gratuity after just 1 year of service. Update your cost calculations for contract staff immediately.
Skill India Mission Update: The Ministry of Skill Development flagged off the Indian contingent for the WorldSkills Asia Competition 2025. This highlights the government's massive push on Vocational Training. Check if your organization is compliant with Apprenticeship Act targets.
One-Line Summary for the Week
"The era of 29 complex labour laws is over; the era of 4 unified codes has begun—bringing higher social security for workers but stricter compliance for employers."
Have you updated your salary structures yet? Let me know in the comments!
Stay tuned for next week's update!
By Mit | HR Professional
You may like to see : The Historic Journey of India’s Labour Codes (2002–2025)
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