Mandatory appointment letters, fixed work hours, social security benefits among key changes in new labour Codes

New Delhi [India], November 22 (ANI): The Occupational Safety, Health and Working Conditions Code (OSH), 2020, which is among the four Labour Codes made effective from November 21, 2025, is enacted to consolidate and simplify the existing complex web of labour laws.

It replaces 13 Central Labour laws with a single comprehensive legislation, thereby reducing multiplicity and bringing uniformity across industries and States/ UTs.

The Code was enacted as a part of the broader labour laws reforms to improve transparency, enhance worker welfare, and promote ease of doing business in India, according to a statement from the central government.

According to the government, the Code balances the twin objectives of safeguarding worker rights and safe working conditions, and creating a business-friendly regulatory environment spur economic growth and employment thereby, making India's labour market more efficient, fair, and future-ready.

Besides, the Code streamlines compliance through measures such as single registration, all-India licences, electronic filings, and time-bound approvals. Additionally, the code reduces the number of rules, returns among other subjects to reduce procedural hurdles and encourage investments.

The new labour codes focus on formalisation of jobs through appointment letters.

Every employee will be given appointment letters in the prescribed format specifying the details of the employee, designation, category, details of the wages, details of social security etc, the government said.

The workers employed in an establishment are entitled for paid leave in a calendar year on working of 180 days or more in such calendar year, earlier workers had to work for 240 days for becoming eligible for paid leave.

"Reduction of eligibility from 240 to 180 days alongwith flexibility in working hours ensures enough rest and recovery, improving productivity and job satisfaction," the central government's statement read.

With these four labour Codes coming into effect, no employee shall be required to work for more than 8 hours in a day and 48 hours in a week. Further, the power to fix the time of interval and spread over time has been given to Appropriate Government.

Fixing overtime hours, with consent of the worker: workers can work 12 hours in a day without overtime in 4-day week, 9.5 hours in 5-day week and 8 daily hours in 6-day week.

"The appropriate Government has been (given) full flexibility for fixing the limit of over-time hours. Earlier this limit was 75 hours in a quarter which can now be fixed by appropriate government. The provision gives two benefits to workers, viz, opportunity to earn more by doing overtime and get paid at higher wage (double the normal wage rate)," the statement added.

The definition of Inter-State Migrant Workermen has also been widened.

The definition has been widened to include those employed directly or through contractor and also covers workers who migrate on their own. For the purpose of collection of data while seeking registration, license; an establishment would have to necessarily indicate the number of ISMW employed in his establishment.

The Ministry of Labour & Employment has also taken steps to develop a national database to enroll unorganized workers including migrants. It will help migrant workers get jobs, map their skills and provide other social security benefits. This will ensure availability of data for ISMW and help in better policy formulation for unorganized sector workers.

The Code empowers the courts, upon conviction of an offender for contravention of any duties, to direct that at least 50% of the fine imposed be paid as compensation to the victim in case of serious bodily injury or their legal heirs in case of death.

The definition of audio- visual worker has been revised and now it includes digital/audio-visual workers and dubbing artist, stunt persons these persons will also get the benefit of law. Now Code gives dubbing artists and stunt workers formal recognition and access to legal protections, ensuring safer and fairer working conditions.

The definition of working journalist has been expanded and now it includes electronic media or digital media journalists and broadens the coverage from print journalism to electronic media (TV, radio, online, etc.), making it more contemporary. This ensures that journalists are covered for workplace safety, health and welfare measures just like other factories or office workers.

Every factory employing 500 or more workers, employer employing 250 or more BOCW and employer employing 100 or more mine workers will constitute safety committee which will consist of representatives from employers and workers.

This code has provided health, safety and welfare of workers in all sectors which was previously limited to 7 sectors viz. factories, mines, plantation, beedi-cigar, dock workers, BOCW and motor transport.

Every employee will be eligible for free annual health check-ups. Also, the plantation employer can now avail the ESI facility for medical services.

In place of 6 boards under different acts, now there is a single National Occupational Safety and Health Advisory Board which is of tripartite nature and has representation from trade unions, employer associations, and State Governments to advise Central Govt. on standards, regulations etc. for factory, mine, dockwork, bidi & cigar, building or other construction work etc.

The boards will set national standards for occupational safety, health and working conditions that will be mandatory for states to follow ensuring compliance to stringent quality standards for occupational safety, health and working conditions across the country for all workers.

The Code provides for establishment of a Social Security fund for the welfare of the unorganised workers to which amount received from composition of the offence as well as from the penalty, would be credited.

Several offences have been decriminalized making the law less punitive and more compliance-oriented encouraging voluntary compliance and reducing fear of harsh penalties for procedural lapses.

Replacing criminal penalties (like imprisonment) with civil penalties (like monetary fines) for certain offences. The employer will be given mandatory 30 days notice for compliance before taking any legal action.

Women workers are entitled to work in all establishments for all types of work (with safeguards). Women can also work at night, i.e. before 6 a.m. and beyond 7 p.m, with their consent and the employer is to make adequate arrangements to provide safety, facilities and transportation to women workers.

"This pro-employment provision allowing women to work in all establishments, promotes gender equality, increases employment opportunities, and improves female participation in the workforce," the government said.

The Occupational Safety, Health and Working Conditions Code, 2020 strengthens India's labour architecture by unifying standards, empowering workers, and enhancing ease of doing business. It lays the foundation for a safer, fairer, and more productive workforce aligned with India's vision of inclusive and sustainable growth, the statement concluded.

In a historic decision, the Government of India has announced that 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 are being made effective from 21st November 2025, rationalising 29 existing labour laws. By modernising labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat. (ANI)

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