Labour Law Expertsby Chheda Consultants

Before → now

What actually changed for employers.

The 14 changes we are asked about most, each with the exact section so you can read the law itself.

Code on WagesEvery employer with a salary structure

One definition of “wages”, and the 50% rule

Before

Each Act defined wages its own way, so PF, gratuity and bonus were often computed on a small basic pay.

Now

Wages are basic pay, dearness allowance and retaining allowance. If the excluded payments exceed half of total remuneration, the excess is added back to wages.

Read section 2
Code on WagesEmployers paying at or near minimum wage

A national floor wage

Before

Each state set minimum wages only for listed (“scheduled”) employments.

Now

The Central Government fixes a floor wage; state minimum wages cannot go below it, and minimum wages now cover all employees.

Read section 9
Code on WagesHR and payroll teams

Wages on time, and full and final within two working days

Before

Timelines varied by establishment size under the Payment of Wages Act.

Now

Monthly wages before the 7th of the next month. On removal, dismissal, retrenchment or resignation, wages within two working days.

Read section 17
Code on WagesFactories, shifts, operations

Overtime at least twice the normal rate

Before

Double overtime applied under the Factories Act and some other laws.

Now

Overtime must be paid at not less than twice the normal rate of wages.

Read section 14
Social Security CodeEmployers using fixed-term contracts

Gratuity for fixed-term employees

Before

Gratuity needed five years of continuous service.

Now

The five-year minimum does not apply when a fixed term ends; the IR Code makes a fixed-term worker eligible for gratuity after one year under the contract.

Read section 53
Social Security CodeAggregators and platforms

Social security for gig and platform workers

Before

No statutory scheme for gig and platform workers.

Now

Aggregators contribute 1–2% of annual turnover (as notified), capped at 5% of what they pay gig and platform workers.

Read section 114
Industrial Relations CodeMid-size manufacturers

Standing orders from 300 workers

Before

The central Standing Orders Act applied from 100 workers; some states set lower limits.

Now

The standing orders chapter applies to industrial establishments with 300 or more workers.

Read section 28
Industrial Relations CodeFactories, mines, plantations

Government permission for lay-off and closure: 300 workers

Before

Under the central Industrial Disputes Act, prior permission was needed from 100 workers.

Now

The special provisions on lay-off, retrenchment and closure apply where 300 or more workers (or a higher notified number) are employed.

Read section 77
Industrial Relations CodeEmployers planning restructuring

A worker re-skilling fund

Before

Retrenchment meant compensation only.

Now

On retrenchment, the employer also contributes fifteen days' last-drawn wages per worker to a re-skilling fund.

Read section 83
Industrial Relations CodeAll industrial establishments

Strike and lock-out notice everywhere

Before

Notice rules applied mainly to public utility services.

Now

No strike or lock-out in any industrial establishment without notice within sixty days before, and not within fourteen days of giving notice.

Read section 62
OSH CodeEvery employer

Appointment letters and free annual health check-ups

Before

Appointment letters were not universally required.

Now

Every employee gets a letter of appointment, and employers provide a free annual health examination for employees of the notified age or class.

Read section 6
OSH CodePrincipal employers and contractors

Contract labour rules from 50 workers

Before

The central Contract Labour Act applied from 20 contract workers (some states, Maharashtra among them, had raised it).

Now

The contract labour part applies to establishments with 50 or more contract labour, and to contractors employing 50 or more.

Read section 45
OSH CodeIT, hospitality, healthcare, manufacturing

Women may work at night, with consent

Before

Night work for women was largely restricted under the Factories Act.

Now

Women may be employed before 6 a.m. and after 7 p.m. with their consent, subject to conditions on safety, holidays and working hours.

Read section 43
OSH CodeEvery establishment

Annual leave after 180 days

Before

Leave with wages needed 240 days of work under the Factories Act.

Now

A worker who has worked 180 days or more in a calendar year earns one day's leave for every twenty days worked.

Read section 32

“Before” refers to the central Acts the codes replaced; states sometimes had different limits. Several figures can be changed by notification — the section text shows where.