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India’s new labour codes bring together dozens of workplace rules into a modern, simplified framework designed to make hiring, wages, social security, and working conditions more transparent and uniform across sectors. From universal minimum wages and gig-worker benefits to flexible work-from-home provisions and digitised compliance, the codes aim to balance worker protection with ease of doing business.

UNIVERSAL MINIMUM WAGES
Minimum wages for all employees, including workers in unorganised sectors. Applies to all employees. Government employers covering >30% of workers.

STATUTORY FLOOR WAGE
Government to fix this based on minimum living standards. Minimum wages by states to be above the statutory floor wage.
UNIFORM DEFINITION OF WAGES
“Wages” now include basic pay, dearness allowance, and retaining allowance.

At least 50% of compensation must be basic pay (so allowances cannot be padded). This helps calculate wages.


GENDER EQUALITY
No discrimination on wages based on gender in recruitment and service conditions for similar work.UNIVERSAL WAGE PAYMENT COVERAGE
Promotes ensuring timely payment of wages and expands coverage to all employees earning up to ?24,000 per month.OVERTIME COMPENSATION
At least twice the normal wage.

DECRIMINALISATION OF OFFENCES
Imprisonment for important offences replaced with monetary fines.

HIGHER THRESHOLD FOR LAY-OFF/RETRENCHMENT/CLOSURE
Approval limit raised from 100 to 300 workers. States may further increase the limit.

WORK-FROM-HOME
Permitted in service sectors with flexibility to improve mutual needs.

DISPUTE RESOLUTION
Two-member tribunal for quicker resolution.

MANDATORY 14-DAY NOTICE FOR STRIKES
To promote negotiations & reduce flash strikes.
Employees must give a 14-day notice before strikes.
Bans strikes during the notice period and bipartite negotiation process.
Prevents flash strikes.

GIG AND PLATFORM WORKERS TO GET SOCIAL SECURITY
Aggregators to be taxed (1–2% of turnover) to fund social security schemes for gig/platform workers.

GRATUITY FOR FIXED-TERM EMPLOYEES
Fixed-term employees will get gratuity on a pro-rata basis, without needing to complete five years.

INSPECTOR-CUM-FACILITATOR SYSTEM
Randomised web-based, algorithm-driven inspections.
Aims to remove harassment.

DECRIMINALISATION
Imprisonment replaced with monetary fines for most offences (except a few serious ones).

COMPOUNDING OF OFFENCES
Allows monetary settlement for certain offences to reduce burden on courts.

DIGITISATION OF COMPLIANCE
Licenses, maintenance of registers & returns all allowed electronically.

ONE LICENSE, ONE REGISTRATION
Inspection registration, return filing all centralised to reduce compliance burden.

FORMAL APPOINTMENT LETTERS
Mandatory for all employees (including those in the unorganised sector).

NIGHT SHIFT FOR WOMEN
Allowed in all sectors with consent and safety measures.

CONTRACT LABOUR ACT
Applicable to establishments with 50 or more contract workers.

HIGHER FACTORY THRESHOLDS
Threshold increased from 10 to 20 workers (with power) and from 20 to 40 workers (without power) for manufacturing units.

WORKING HOURS & OVERTIME
Maximum working hours stay at 48 hours/week. Daily limit may be increased, with overtime paid twice the regular rate.

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