GOVERNMENT

New Labour Codes 2025: Opportunity or Outcry?

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On 21 November 2025, India’s labour landscape changed forever: the government replaced 29 older laws with four comprehensive new labour codes, covering wages, industrial relations, social security, and workplace safety. 

What does that mean for workers? For many, it sounded like a win, especially for contract and fixed-term workers, who, under the updated rules, now qualify for gratuity after just one year of service, instead of the previous five. 

Add to that expanded definitions for “wage” (so allowances count more), protections for health, social security, and more inclusive job norms, and it seems like a long-awaited step toward modern labour reform. For many gig, contract, and temporary workers, long excluded from benefits, this appears to be a landmark shift. Suddenly, some of the perks traditionally reserved only for permanent staff are extended to a much larger pool. It is social security made more inclusive.

The Political Backlash: Protests Outside Parliament

But this reform didn’t sail smoothly. The moment the new codes were notified, alarm bells rang for many union leaders and opposition parties. On December 2, MPs, including Sonia Gandhi and Mallikarjun Kharge, staged a protest outside the Parliament complex, raising placards and slogans demanding that he new laws be rolled back. 

Their argument? These codes benefit corporations more than workers, allowing easier layoffs, diluting job security, and undermining collective bargaining rights. Trade unions across the country echo similar fears: what if “flexibility” becomes “exploitation”? What if temporary jobs, previously light on benefits, become even more vulnerable under the cloak of new definitions and frequent hiring-firing cycles? For them, this isn’t reform, it’s a disguised rollback of worker rights. 

Between Reform and Risk: What’s the Verdict?

The new labour codes walk a tightrope. On one side, there’s a needed push toward inclusivity, protection for informal workers, and flexibility for modern businesses. On the other, a legitimate fear that under relaxed labour norms, job security and worker welfare might take a back seat.

For contract workers, the cut in gratuity eligibility from five years to one is a game-changer. For millions of India’s unorganised workforce, it might mean a combination of dignity and safety. But for many unions and opposition leaders, the same laws signal a slippery slope.

As politics rages on and protests echo through Parliament corridors, the real test will be in implementation, whether the laws reflect worker protection or corporate convenience. For now, the 2025 labour reforms remain India’s most ambitious overhaul in decades: hopeful for some, controversial for many, and undoubtedly the biggest labour conversation in recent memory.