Labour Codes Come into Full Force after 5-year Wait; Opposition Calls Them ‘Anti-worker’
Moneylife Digital Team 11 May 2026
More than five years after Parliament cleared the legislation, the Union government has fully operationalised the four Labour Codes by notifying the long-awaited rules, paving the way for the implementation of a new labour law framework replacing 29 existing laws governing wages, social security, industrial relations and workplace safety.
 
In over 30 gazette notifications issued on 8th May and 9 May 2026, the Union government published the rules under the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.
 
Key provisions under the new framework include mandatory appointment letters for employees, universal social security coverage, equal opportunity provisions for women across different work shifts, free health check-ups for workers aged 40 and above and the creation of a National Reskilling Fund for workers who lose their jobs.
 
The four codes had officially come into effect on 21 November 2025, but several operational provisions remained pending due to the absence of notified rules. With the latest notifications, the government has completed the full implementation process.
 
Officials say the rules had been finalised after considering stakeholder feedback received on the draft rules published in December 2025.
 
“The rules under the four codes are now notified in the official gazette, and with this, the process of full implementation of the labour codes is complete,” an official says.
 
The codification exercise aims to modernise and simplify India’s labour law architecture by consolidating 29 separate laws into four comprehensive codes.
 
The government says the reforms were intended to improve the ease of doing business, promote employment generation, strengthen worker safety and ensure wage and social security protections for workers across the organised and unorganised sectors.
 
The notified rules also cap weekly working hours at 48 hours and mandate at least one rest day or weekend off for workers.
 
According to the rules, 'the total number of weekly working hours shall not exceed forty-eight hours'.
 
For workers paid daily, the standard working day has been set at eight hours. The rules also mandate overtime payments for work beyond prescribed working hours.
 
The Code on Wages Rules provide that wage rates for a day, hour and month would be determined through a prescribed formula. The Union government may consult the central advisory board while fixing floor wages, taking into account minimum living standards, including food, housing and clothing requirements.
 
Employers have also been directed to issue wage slips in either electronic or physical form.
 
The Industrial Relations Code provides that where a single registered trade union has membership of at least 30% of workers in an industrial establishment, it shall be recognised as the sole negotiating union.
 
The Code on Social Security amends multiple existing frameworks, including the Employees’ State Insurance Rules and provisions relating to provident fund tribunals.
 
Since labour is a concurrent subject under the Constitution, States are also required to notify corresponding rules to ensure complete implementation across the country.
 
Soon after the publication of the rules, protests erupted in several parts of the country, with opposition parties as well as members of 10 central trade unions burning copies of the notifications and accusing the government of weakening labour protections.
 
Congress president Mallikarjun Kharge attacked the government, describing the codes as 'anti-worker'.
 
In a statement posted on X, Mr Kharge alleged that the codes would lead to “hire-and-fire policies, contract employment and limited space for unionisation”.
 
“It is important to note that the Modi Government drafted and implemented these anti-worker codes without any consultation. It has not even convened the Indian Labour Conference since 2015,” he said.
 
Mr Kharge said the Congress remained committed to its ‘Shramik Nyay’ agenda, including a national minimum wage of ₹400 per day, universal health coverage, comprehensive social security for unorganised workers and measures against contractualisation in core government functions.
 
 
Senior leader of the Centre of Indian Trade Unions (CITU) R Karumalaiyan alleged that the government ignored suggestions submitted by trade unions during the consultation process.
 
“We had submitted amendments seeking clarity on working hours, trade union rights, minimum wages, floor wages and protection of social security. This government has ignored all our suggestions, forcing us to go on protests,” he says.
 
The Communist Party of India (Marxist) (CPI-M) accused the Union government of deliberately delaying the notification of the rules until after the assembly election results in four states and one Union Territory (UT).
 
“Within just four days after the announcement of results, they have now operationalised the Labour Codes. This exposes the deceptive modus operandi of the BJP-led Union government,” the party says in a statement, urging states to reject the rules.
 
The Bharatiya Mazdoor Sangh (BMS) says it was studying the notified rules and would issue a detailed response later.
 
The labour law reforms were first introduced between 2019 and 2020 as part of the Union government’s largest structural reform initiative. However, implementation was repeatedly delayed, amid resistance from trade unions, concerns raised by states and prolonged consultations over the framing of rules.
 
With the publication of the final rules, the government has now moved into the next phase of labour law reform, which it says will create a 'pro-worker and pro-industry ecosystem', even as political opposition and labour unrest over the changes continue to intensify.
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