New Labour Laws: Several social media posts are in circulation suggesting that a large section of workers, especially contractual workers, may lose benefits such as Employee Provident Fund (EPF) Scheme and Employees’ State Insurance Corporation (ESIC) Scheme.
The Ministry of Labour & Employment clarified that contractual and fixed-time workers have NOT been excluded. It added these workers will continue to receive coverage under ESIC and EPF based on establishment and wage thresholds and not the nature of their employment.
It was also added that contractual and fixed-term workers will receive statutory benefits just like permanent workers. The Ministry also said simplified processes have been put in place to increase formalization, minimize evasion and widen social security coverage. All in all, the provisions of working hours, overtime and wage will be applied to every worker.
When Were The New Labour Reforms Announced?
The new labour reforms were announced by the Central Government on November 21, 2025.
When Will These Laws Get Implemented?
The four laws:
- The Code on Wages, 2019: Aims to regulate wage and bonus payments in all employments.
- The Code on Social Security, 2020: Consolidates laws related to social security and maternity benefits.
- The Occupational Safety, Health and Working Conditions Code, 2020: Regulates the health and safety conditions of workers in establishments with 10 or more workers.
- Industrial Relations Code, 2020: Reduces the labour compliance burden of industries.
replacing 29 existing central labour laws will be implemented by April 1, 2026.
