Business & Economics

India Activates Four-Code Labour Overhaul, Repealing 29 Legacy Acts

Effective 21 Nov 2025, the Modi government brought into force four consolidated labour codes that replace 29 separate statutes, creating one digital registration-and-compliance regime for wages, industrial relations, social security and workplace safety.

By Tomás Rydell

Focusing Facts

  1. The new framework cuts paid-leave eligibility from 240 to 180 working days per calendar year for all employees.
  2. Gratuity is now payable to fixed-term employees after 12 months of service instead of the previous five-year minimum.
  3. Companies can now lay off staff without state permission until their workforce reaches 300, triple the earlier 100-employee threshold.

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