The four Labour Codes merge and modernise 29 Central labour laws, some of which were over a century old, and also overlap in several sections. The new Codes that were passed by Parliament in 2019 and 2020 aimed to bring the labour laws in sync with the needs of the modern economy. After years of oppositions and consultations, the Centre finally notified the Codes in November last year.

While the four Codes had become effective from the date of their notification, certain provisions required notification of rules for their implementation. The Centre had previously issued draft rules for stakeholder consultations. On May 8, it notified the Central rules for the four Codes, giving effect to almost all provisions of the new labour laws now.

Puneet Gupta, Partner, People Advisory Services -Tax, EY India explained that Central Rules framed under three of the codes—Code on Wages, the Industrial Relations Code, and the Occupational Safety, Health and Working Conditions Code—will predominantly apply to establishments for which the Central Government is the ‘appropriate government’.

“This includes sectors such as telecommunications, banking and insurance, mines, oil fields, major ports, air transport, as well as central public sector undertakings and their contractors,” he said. In contrast, the Central Rules under the Code on Social Security have a much wider footprint and will extend to establishments operating across more than one State."

There are several important Central rules that have been notified. For instance, the Code on Wages Rules has prescribed fixing of minimum wages and a national floor wage. It has also mandated a 48-hour cap on weekly working hours. It has placed the onus for statutory minimum bonus to contract labour on the principal employer and has standardised formats for key registers and introduced a formal nomination framework, says Gupta of EY.

The rules on the Code on Social Security clarify procedures for registration of gig and platform workers as well as contributions for the Employees’ State Insurance scheme and creche facilities.

The Rules notified under the Occupational Safety, Health and Working Conditions Code have clarified the forms for registration and cessation of operations of a unit, as well as roles and duties of employers and employees such as annual health check-up of employees. It has also notified provisions related to the National Occupational Safety and Health Advisory Board as well as the collection of statistics and a portal for migrant interstate workers. Gupta noted it also addresses
several operationally significant areas, including working hours and overtime payments, contract obligations relating to contract labour, and compulsory issuance of appointment letters.

The rules for the Industrial Relations Code delegate power to Joint Secretary-level officers to examine and consider applications relating to lay-off, retrenchment and closure in establishments, where the Central Government is the appropriate Government. Another significant provision that has been notified is the Model Standing Orders under the Industrial Relations Code as well as the National Reskilling Fund.

Employers in units under the Central labour laws will have to carefully assess the new rules and ensure compliance. However, since labour falls in the Concurrent list of the Constitution, both the Centre and the States have to make their own laws and rules. The notification of rules by several states is still pending and employers will have to await those as well for greater clarity. But states now have a reference in the Central rules for framing their respective rules.

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Published on: May 9, 2026 3:25 PM IST