Clipped from: https://www.financialexpress.com/money/labour-codes-final-rules-still-pending-centre-explains-why-4080182/
Although the four Labour Codes officially came into force from November 21, 2025, companies are yet to make visible changes to wages, leave policies and compliance systems. The delay has triggered confusion among employees, trade unions and MPs, with the government clarifying in Parliament that full implementation depends on States and UTs finalising and notifying their rules under the new labour law framework.
The much-awaited 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 (OSH) Code, 2020 — are stated to have come into force from November 21, 2025. However, companies have so far not made any visible changes to their policies that fall under these Codes. The four Labour Codes consolidate and replace 29 existing central labour laws.
The Centre’s statement last month that the new laws have been implemented from November 21 has created confusion among employees and other stakeholders. Many are questioning how the Codes can be considered in force when companies have not yet revised wage structures, leave policies, or addressed the numerous compliance requirements mandated under the new framework.
The implementation of the new labour laws has emerged as one of the most frequently raised issues in the ongoing Winter Session of Parliament, with lawmakers from both the ruling party and the Opposition seeking clarity from the government in the Rajya Sabha as well as the Lok Sabha.
Besides the implementation matter, MPs have also raised questions around various trade unions protesting against certain “thorny issues” in the new labour laws and sought the government’s response to these queries.
What’s govt clarification on final implementation of labour codes
One of the questions asked from the Labour Ministry read:
Whether it is true that some of the state governments prepared draft on the rules to implement the new four Labour codes and if so, the details thereof?
In response, Union Labour and Employment Minister Shobha Karandlaje said that the states/Union Territories (UTs) are still “in process of finalising the rules” under the four Labour Codes.
As per the government’s reply, several states and UTs have pre-published draft rules under the four Labour Codes, but the process is still not complete across the country. Draft rules under the Code on Wages, 2019 have been pre-published by 34 states/UTs, while 35 states/UTs have issued draft rules for the Industrial Relations Code, 2020.
In the case of the Code on Social Security, 2020, draft rules have been pre-published by 34 states/UTs, and 35 states/UTs have done so for the Occupational Safety, Health and Working Conditions (OSH) Code, 2020. This shows that while progress has been made, full implementation of the Labour Codes is still pending in some states and UTs.
Govt response to trade unions’ protest against certain new provisions
On being asked about the possibility of calling the Indian Labour Conference or a tripartite meeting between the government, employers and trade unions for resolving some of the “thorny issues” in the Labour Codes, the minister said that these four Labour Codes were passed after extensive consultations with all stakeholders, including state/UTs.
“The comments/concerns raised by the stakeholders were acknowledged and examined before the passage of four Labour Codes. The Codes came into force with effect from 21.11.2025 across the country.”
The minister further said that several national and regional labour conferences were held with states and UTs to discuss issues relating to new labour laws. The government is also interacting with all stakeholders, including states/UTs for smooth implementation of the four Labour Codes.
“Further, various concrete provisions have been made in the Industrial Relations Code, 2020 to protect the interest of workers. The collective bargaining of workers has been strengthened and made statutory through recognition of Negotiating Union and Negotiating Council. The provision of two-member Industrial Tribunal will ensure faster dispute resolution,” the government said.
Experts’ take on implementation of these much-awaited laws.
Akhil Chandna, partner–global people solutions leader, Grant Thornton Bharat, says that the implementation requires the employers to align operations with the new provisions effective 21st November itself.
“The provisions which do not depend on rules should be immediately complied with. Further, it may not be feasible to implement the provisions which require Rules to make them practically operational. Hence, full practical implementation hinges on state/UT governments framing and notifying the rules, which would operationalise certain possible aspects like wage thresholds, inspection processes etc.
Rishi Agrawal CEO and CO-Founder of Teamlease Regtech, said, that labour is a concurrent subject in India, so states must issue subordinate rules (on matters like procedural details, forms, and certain thresholds) to operationalise the codes’ provisions within their jurisdictions. That said, full practical implementation of many provisions does depend on each state/UTs formulating and notifying their own rules under these codes.
aniltikotekar4sme.com 