New Labor Codes 2025: Our expert breaks down the reforms in an exclusive interview with Dainik Jagran

Question 1: Which Labor Code rules related to salary and social security have been implemented now, and which ones remain?

Answer:   There are four labour codes – the Code on Wages 2019, the Code on Social Security 2020, the Occupational Safety, Health and Working Conditions Code 2020, and the Industrial Relations Code 2020. Of these, certain provisions of the Wages Code and the Social Security Code have been partially implemented on November 21, 2025.

• The rules currently in force in the Wages Code include definitions related to wages, fixed time limit for payment of wages, minimum wages applicable to all types of employees and ensuring timely payment of wages.
• The provisions of the Social Security Code that have been implemented include Employees' State Insurance (ESI), maternity benefits, governance related to gratuity and parts of the Employees' Provident Fund (EPF) scheme.

However, many rules and detailed operational guidelines related to social security schemes are yet to be notified, and therefore, their full implementation is still pending.

Question 2: For those working without appointment letters, is it now mandatory for companies to provide them? If so, by what date is it required? And what can an employee do if the company refuses to provide the letter?

Answer: According to the new labor codes, every employee, whether regular, casual, gig, or platform worker (basic salary 50% of CTC), is now required to provide an appointment letter. This rule came into effect on November 21, 2025. If a company still refuses to provide the letter, the employee can directly file a complaint with the labor court or the relevant authority. The new code makes this a legal right.

Question 3: When will the rule of 50% of basic salary be implemented?

Answer: The Code on Wages states that basic pay should be at least 50% of the total salary. This rule is partially implemented. Currently, it is being used in the calculation of PF and gratuity. However, it will be considered fully implemented once the government issues detailed guidelines. It is expected that the complete framework will be notified soon.

Question 4: If I resign after working for 15 months, will I get gratuity?

Answer: Yes, the eligibility period for gratuity has been changed in the new codes. Previously, 5 years of service was required, but now 1 year of continuous service is sufficient for gratuity. Therefore, even an employee who resigns after working for 15 months will receive gratuity.

Question 5: What is the difference between labor laws and labor code?

Answer: Older labor laws covered different topics, such as working conditions, industrial relations, unions, etc. However, labor codes consolidate these dozens of laws into a simple, unified system, making it easier for companies to comply and providing universal protection to employees.

The new codes aim to simplify the rules, but due to incomplete notification, confusion still persists among both employees and companies.

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