SF Prep Notes

Four Labour Codes come into effect, replacing 29 central labour laws

The Government of India made the four Labour Codes — 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 — effective from 21 November 2025, rationalising 29 existing labour laws.

Summary

The four Labour Codes make appointment letters mandatory for all workers, give every worker a statutory right to minimum wages and extend social security to gig and platform workers. 'Gig work', 'platform work' and 'aggregators' are defined for the first time, and aggregators must contribute 1–2% of annual turnover, capped at 5% of the amount paid to such workers. Fixed-term employees become eligible for gratuity after one year instead of five, employers must give workers above 40 a free annual health check-up, and women may work night shifts and in all types of work with consent and safety measures. PM Narendra Modi welcomed the implementation.

Key facts

Effective from
21 November 2025
Codes
Wages 2019; Industrial Relations 2020; Social Security 2020; OSH 2020
Laws rationalised
29 central labour laws
Gig/platform workers
Defined for first time; aggregators pay 1–2% of turnover (cap 5% of payouts)
Fixed-term employees
Gratuity after 1 year (instead of 5)
Health
Free annual check-up for workers above 40

Practice MCQs 4 questions

Q1

The four Labour Codes made effective from 21 November 2025 rationalise how many existing central labour laws?

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Correct answer: B — 29

The four Codes rationalise 29 existing central labour laws.

Q2 Advanced

Which of the following is NOT one of the four Labour Codes made effective in November 2025?

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Correct answer: D — Code on Minimum Pension, 2020

The four Codes are the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and the OSH Code 2020. There is no Code on Minimum Pension.

Q3 Advanced

Under the Code on Social Security, 2020, as implemented in November 2025, aggregators must contribute towards gig and platform workers:

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Correct answer: A — 1–2% of annual turnover, capped at 5% of the amount paid/payable to such workers

Aggregators must contribute 1–2% of annual turnover, capped at 5% of the amount paid/payable to gig and platform workers.

Q4 Advanced

Consider the following statements about the Labour Codes made effective in November 2025: 1. Employers must provide all workers above the age of 40 years with a free annual health check-up. 2. Women are barred from working night shifts in underground mining. Which of the statements given above is/are correct?

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Correct answer: A — 1 only

Statement 1 is correct. Statement 2 is wrong: women may work night shifts and in all types of work, including underground mining, with their consent and mandatory safety measures.

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