What changes for employees under the new Labour Codes?
For employees in India, here is what changes under the Labour Codes: a written appointment letter, minimum wages and timely pay, a statutory wage base for PF and gratuity, gratuity after one year for fixed-term staff, leave rules with encashment, a free annual health check-up, and exit wages within two working days.
At a glance
- Ask for an appointment letter if you do not have one.
- Check your payslip for wage components, PF and wage slip.
- Fixed-term staff get gratuity after one year of service.
- Final wages are due within two working days of leaving.
What to check, one by one
| Topic | What the Codes say | Page |
|---|---|---|
| Appointment letter | Mandatory | Appointment letters |
| Pay | Fixed dates; minimum wage floor | Code on Wages |
| Salary structure | One wage definition, 50% rule | Wage rule |
| In-hand pay | Depends on employer's structure | Take-home pay |
| Gratuity | 5 years; 1 year for fixed-term | Gratuity |
| Hours and overtime | 8 hours, 48 weekly; overtime at twice the rate | Hours |
| Leave | 180 days to qualify; encashment | Leave |
| Leaving | Wages in two working days | F&F |
If you are on a contract
Direct fixed-term employees have parity in wages and benefits (fixed-term guide). If a contractor employs you, the principal employer provides welfare facilities and must pay wages if the contractor fails to.
If you resign soon
Calculate your gratuity years, leave balance and notice. Read notice period in India and use the resignation letter format.
Where to raise a problem
Start with HR and your Grievance Redressal Committee, if your employer has one (20 or more workers). Then approach the labour authority of the appropriate government. The Industrial Relations Code lets a worker apply to the committee within one year of the cause of action.
One caution
The Codes set minimums. Your contract, a better state law or an award can give more. If a rule matters for a decision, confirm it with a qualified adviser.
Sources
- PIB, Government makes the four Labour Codes effective (21 Nov 2025), https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2192463®=3&lang=2, checked 2026-10-31
- PIB, India's Labour Reforms: Simplification, Security, and Sustainable Growth (21 Nov 2025), https://www.pib.gov.in/PressReleasePage.aspx?PRID=2192524®=3&lang=2, checked 2026-10-31
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes (Central Government sphere), https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf, checked 2026-10-31
- The Occupational Safety, Health and Working Conditions Code, 2020 (official text), https://www.labour.gov.in/static/uploads/2025/07/36fcfa5d8e6b9145e282bf7b950d6c47.pdf, checked 2026-10-31
- The Code on Social Security, 2020 (official text), https://www.labour.gov.in/static/uploads/2025/07/b0620548445580767b5c0d18c95c26f7.pdf, checked 2026-10-31
- The Code on Wages, 2019 (official text), https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf, checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.