The Centre notified implementation rules for the four Labour Codes in 2026, following their enactment in 2020 and coming into force in 2025. These codes consolidate 29 existing labour laws into Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code. The rules specify minimum wage determination, contract labour registration, social security coverage thresholds, and workplace safety protocols. This marks India's biggest labour law reform since independence, affecting over 500 million workers across organized and unorganized sectors.

The Four Labour Codes represent India's most comprehensive labour law overhaul since 1947, consolidating a fragmented legal framework that hindered ease of doing business and worker protection. The Code on Wages establishes universal minimum wage coverage and equal pay principles. The Industrial Relations Code streamlines dispute resolution and allows establishments with up to 300 workers to retrench without government approval (increased from 100). The Social Security Code extends coverage to gig workers and platform employees, creating portable social security accounts. The Occupational Safety Code mandates safety protocols across all sectors, not just factories. The 2026 rules notification was delayed to ensure state government readiness and stakeholder consultations. This reform addresses dual challenges: providing flexibility to employers for competitiveness while ensuring dignified work conditions. It introduces fixed-term employment, simplifies compliance through single registration, and establishes appellate mechanisms. The timing coincides with India's manufacturing push under PLI schemes, making labour law flexibility crucial for attracting investment while maintaining worker welfare standards essential for inclusive growth.