New Labour Code 2025

Central Government Notifies Rules Under All Four Labour Codes: What Employers Need to Know

In a landmark move towards transforming India’s labour law framework, the Central Government has officially notified the Rules under all four Labour Codes through the Gazette Notification dated 8th May 2026. This major development marks a significant step in simplifying and modernizing labour compliance across industries.

A New Era of Labour Law Reforms

The newly notified Labour Codes include:

• Code on Wages, 2019
• Industrial Relations Code, 2020
• Code on Social Security, 2020
• Occupational Safety, Health and Working Conditions Code, 2020

Together, these codes consolidate and replace 29 existing Central Labour Laws, aiming to create a more transparent, streamlined, and business-friendly regulatory environment while strengthening employee welfare and workplace governance.

What This Means for Employers

The implementation of these Rules is particularly important for sectors where the Central Government acts as the “appropriate government,” including:

• Banking & Financial Services
• Insurance
• Telecom
• Oil & Gas
• Mining
• Aviation
• Central Government Establishments and Contractors

The notified Rules provide operational clarity on wages, overtime, social security, employee records, bonus payments, working hours, compliance registers, grievance handling, and digital record maintenance.

Continuity in PF & ESI Benefits

One of the key highlights is that the existing Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) schemes will continue until corresponding schemes under the Code on Social Security, 2020 are fully finalized and notified. This ensures uninterrupted employee benefits and smooth transition for employers.

Digital Compliance & Modernized HR Practices

The Rules also emphasize digitization and simplified compliance through:

• Electronic wage registers
• Digital attendance and payroll records
• Online notices and communication
• Standardized formats for employee records and claims

This is expected to significantly reduce compliance complexity and improve operational efficiency for organizations across India.

Karnataka Employers: What to Expect

While the Central Rules are now notified, State Governments are yet to issue their final Rules. Karnataka has already released preliminary notifications under all four Labour Codes, and the final Rules are awaited. Employers operating in Karnataka should closely monitor further developments to ensure timely compliance readiness.

Preparing for the Future of Workforce Compliance

The notification of these Rules signals the beginning of a major shift in India’s employment and compliance landscape. Organizations should proactively review their HR policies, payroll structures, employment contracts, compliance frameworks, and digital systems to align with the evolving legal requirements.

As India moves toward a unified labour law regime, staying informed and prepared will be essential for businesses aiming to remain compliant, competitive, and employee-centric.

For the official notification, please click here - [(https://www.datocms-assets.com/40521/1778679078-circular-no_025_2026_1.pdf)]