Updated Labour Laws in India 2026

The 29 earlier labour laws that regulated different aspects of employment in India have now been consolidated into four comprehensive

Labour Codes:

Code on Wages, 2019

Industrial Relations Code, 2020

Code on Social Security, 2020

Occupational Safety, Health and Working Conditions, 2020

Key Objectives:

• As the economic landscape evolves and countries worldwide update their employment laws, we need to align with global standards and become future-ready.

• Existing outdated and fragmented employment laws and regulations must be simplified and streamlined for better management.

• Enhance social security and safety for all categories of employees, whether permanent, contract, gig, and platform workers (who are formally defined for the first time).

• Reduce regulatory complexity for employers and make compliance easy to manage.

Formal Employment Rules

Various worker categories, including youth workers, audio-visual and digital-media workers and dock workers, will now receive formal appointment letters. This improves transparency and helps build an employment history.

Improved Social Security

Social security benefits such as Provident Fund and Gratuity now extend to several worker categories, including fixed-term employees, labour contract workers, and export-sector workers.

Minimum Wages and Timely Payment

All workers are assured minimum wage protection and timely payment of wages, which especially benefits individuals in the MSME sectors.

Health and Occupational Safety

Preventive health care measures, including annual health check-ups for employees above 40 years of age and for those in hazardous industries, are now mandatory.

All workers will have access to ESIC (Employees’ State Insurance Corporation) insurance and employee compensation benefits.

Gender Equality and Women Empowerment

The labour law change now guarantees equal pay for equal work, allows women to work night shifts across all sectors, and provides equal opportunities for women in high-paying jobs.

Simplified Compliance

The new reforms under the Indian Labour Law simplify regulatory compliance by reducing multiple administrative requirements into a single registration, a single license, and a single return.

Flexibility and Clarity

Clear definitions for various worker categories and defined wage terms reduce ambiguity. This gives employers greater flexibility to hire different types of workers, follow streamlined employment practices, and ensure social security and satisfaction for employees.

Under the Employees’ Compensation Act, 1923, employers must provide financial compensation to workers who suffer injuries at the workplace. This includes compensation for accidental death, permanent total or partial disability, and temporary disability to cover medical expenses and loss of wages.

For instance, if a factory worker gets injured while operating machinery and is temporarily disabled, the employer must pay for the loss of wages until the worker resumes work.

ESIC (Employees’ State Insurance Corporation) benefits are used to determine this coverage.

What’s the New Labour Law Change?

Earlier, ESIC applied only to specific industries. While it remains voluntary for organisations with fewer than 10 employees, the new employment law updates make it mandatory for organisations with even one employee engaged in hazardous activities.

Also, the recent labour law change states that certain accidents incurred while commuting to work will also be treated as employment-related and need to be compensated with labour insurance.

If your business is not covered under ESIC, you can still stay compliant and protect your workforce with a Workmen’s Compensation policy.

TATA AIG offers the WC policy online. We help you cover employer liability and provide extensive protection for both small businesses and large workforces.

We also extend the benefit of customising your policy with optional add-ons to cover medical expenses and occupational diseases. Explore TATA AIG and make compliance simple and hassle-free.