Overview:
Since the implementation of the 4 Labour Codes, i.e., the Code on Wages, 2019 (“Wage Code”), the Code on Social Security, 2020 (“Social Security Code”), the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”), and the Industrial Relations Code, 2020 (“Industrial Relations Code”), on November 21, 2025 (collectively, the “Labour Codes”), India’s labour law regime has undergone a significant shift.
In keeping up with the operationalisation of the Labour Codes, the Ministry of Labour and Employment by a series of notifications in the official gazette issued on May 8, 2026, notified the final Central Rules under the 4 Labour Codes, i.e., the Code on Wages (Central) Rules, 2026 (“Central Wage Rules”), the Social Security (Central) Rules, 2026 (“Central Social Security Rules”), the Occupational Safety Health and Working Conditions Central Rules 2026 (“Central OSH Rules”), and the Industrial Relations (Central) Rules, 2026 (“Central Industrial Relations Rules”) (collectively, “Central Rules”). Further, Ministry has also notified the Model Standing Orders, 2026 (“MSOs”) under the Industrial Relations Code, applicable to the service, manufacturing and mining sectors on May 8, 2026.
These Central Rules and the MSOs have taken effect from the date of their publication in the official gazette, i.e., from May 8, 2026.
Applicability:
It is important to note that where the “appropriate government” is the Central Government, for instance, for establishments of railways, mines, oil fields, major ports, air transport service, etc., one will have to refer to the Central Rules.
In all other instances, the State Rules will be the applicable Rules under the Labour Codes. That said, as regards the Social Security Code, the Code designates the Central Government as the appropriate government for private organizations (irrespective of the nature of their operations) with operations in more than one state. To that end, the Central Social Security Rules should be kept in mind by the organisations who operate out of more than one state.
A. Key Positions under the Central Wage Rules
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Under the Central Wage Rules, where an employee’s minimum rate of wages has been fixed under the Wage Code, their maximum weekly working hours cannot exceed 48 hours, exceeding which, overtime pay is applicable at the overtime rate which shall not be less than twice the normal rate of wages.
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Employees are entitled to a weekly rest day, which may typically be a Sunday in a 6-day week, or both Saturday and Sunday in a less than 6-day week, where they complete the required workdays (i.e., a continuous period of 6-days or less than 6-days as applicable).
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Deductions on account of absence of duty, or for damage or loss caused by employee shall be pursuant to an intimation and a reply being sought in case of absence of duty, and for deductions on account of damage or loss, with prior opportunity to employee to submit their explanation. Critically, these Rules indicate ‘establishment of charges’ being a prerequisite to any deductions made from an employee’s wages.
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The Rules prescribe returns under the Wage Code to be filed electronically in the forms under the OSH Code thus resulting in fewer procedural compliances under the Wage Code.
B. Key Positions under the Central Social Security Rules
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Fixed-term employees entitled to gratuity upon completion of 1 year.
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Employers voluntarily covered under provident fund and ESI provisions have the flexibility to opt out of such coverage provided such application may only be made after 5 years of such coverage and with majority of its employees consent, in writing.
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Crèche facilities to be provided by every establishment with 50 or more employees for children aged 6 and younger. Such crèche to be located within 1 kilometre of the establishment. Where crèche facilities are not provided, crèche allowance to be paid which shall not be less than INR 500 per month per child (or such amount as notified by the Central Government).
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Aggregators to provide details of all gig and platform workers engaged by it on the designated portal of the Central Government within 45 days from the commencement of the Central Rules.
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Registered gig and platform workers of 60 years or more to cease to be eligible for the benefits of social security schemes or when they are not engaged as gig and platform worker with any of the aggregators for more than 90 days. In case of multiple aggregators, for more than 120 days in the last financial year.
C. Key Positions under the Central OSH Rules
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An establishment shall be deemed to be registered after 7 days of submission of a complete application of registration on the Shram Suvidha Portal.
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Establishments already registered under other Central labour laws (including, the erstwhile labour laws that have since been subsumed by the OSH Code) to update registration within 6 months from the date of the implementation of the Central OSH Rules.
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The certificate of registration issued under the OSH Code is non-transferable and is to be displayed at conspicuous places in the establishment’s premises.
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Employers of dock work, building or other construction work to conduct free of cost medical examination for employees of 40 years or older.
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Employee’s appointment letter to mandatorily contain details, inter alia, name of employee, date of birth, Aadhaar number (after obtaining due consent), designation, type of employment, and category of skill.
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Establishments employing 500 or more workers to constitute a Safety Committee with a tenure of 3 years and comprising of representatives of employers and employees. The manner of constitution of the Safety Committee is more specifically provided for under the Rules, which includes adequate women representation which cannot be less than the proportion of women workers to the total workers.
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Employer of every factory, mine, building or other construction work, industrial premise for manufacture of beedi and cigar, motor transport undertaking, dock work and plantation with more than 50 workers to provide creche facilities for children under the age of 6 years. Stipulates provision of mobile creche wherever required.
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Employment of women between 7 p.m. to 6 a.m. allowed subject to certain conditions (such as consent, transport facilities, and adherence with the POSH Act).
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Weekly work hours of workers limited to 48 hours, in excess of which, workers become eligible for overtime pay at twice the rate of wages provided that overtime hours cannot exceed 144 hours in a quarter.
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Registers (such as employee register, attendance-cum-muster roll, and register of wages, overtime and deductions) to be maintained electronically or otherwise. Wage slips to be issued electronically to employees on or before day of wage payment.
D. Key Positions under the Central Industrial Relations Rules
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Grievance Redressal Committee (“GRC”) to be established by industrial establishments employing 20 or more workers to consist of not more than 10 members in equal representation between the employer and workers. The term of the GRC shall be 3 years.
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The employer representatives in the GRC to be, as far as possible, officials in direct touch with or associated with the working of the establishment, preferable the heads of major departments of such industrial establishment.
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Application (whether electronic or otherwise) by an aggrieved worker to the GRC for any grievance to include their name, designation, worker corde or token number, department where posted, length of his service in years, category of worker, address for correspondence, contact number, details of grievance and the relief sought.
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The Central Industrial Relations Rules sets out the MSOs applicable to the industrial establishments in the mine sector, manufacturing sector and the service sector as issued under the Model Standing Orders, 2026.
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Where an employer of an industrial establishment adopts the applicable MSO issued by the Central Government, it is deemed certified if the certifying officer does not raise observation within 30 days of intimation.
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An employer retrenching a worker is required to transfer 15 days’ last drawn wages of the worker to the Worker Re-skilling Fund within 10 days of the date of such retrenchment.
Looking Ahead:
Given the implementation of the Central Rules, it would be critical for employers on whom the Central Rules are applicable to assess and initiate steps for compliance with the statutory obligations under the Labour Codes which have now become fully operational. In the context of employers who fall outside the ambit of these Rules, the recently notified Central Rules provide an important blueprint and indicative framework of the compliance and regulatory approach that may be adopted by states going forward.
Somya Bhargava, Kajol Pokkhriyal and Deepti Thakkar
You can direct your queries or comments to the authors.