New Labour Laws: In case you have tried to run a startup of 2025 on a software of 1980s, you are already made aware of the labour issue in India. For a long time, an unforeseen and rapid change in the workforce was being dealt with by employing legislation that had already gone outdated, comparable in the museum.
On the one hand, such developments as 16 crore job creations, a drop in unemployment rates from 6% to 3.2%, and over 1.5 crore women entering the formal workforce in 2017-18 to 2023-24 were taking place in India.
In a nutshell, India modernized its labor force but neglected to change its rulebook. The four new labour codes are here to change that,the biggest resetting of the labour system since Independence.
They can be viewed as the starting of the proper reshaping of the system by India through the ‘refresh’ button pressed on an outdated system accompanied with the installation of a cleaner, digital-first labour framework that is compatible with the economy we are living in.
And the fascinating part for you, the reader, is here: This is not purely a theoretical discussion about policies. The new codes will determine your manner of working, your salary, the safety of your workplace, and even the portability of your benefits between jobs.
New Labour Laws: What’s So Special And New For Gig And Platform Workers?
Lets Break It Down: when your food arrives hot, your cab shows up in 4 minutes, or your leaky tap gets fixed before your landlord calls back, who makes it happen? Gig and platform workers, the real-time problem-solvers of the modern economy.
They don’t work in cubicles, they don’t clock in at 9, and they don’t enjoy the cushy safety nets that traditional employees do. Yet, they power India’s cities every single day, from delivery agents and ride-hailing drivers to app-based beauticians, service technicians, and freelancers.
And that’s exactly why the new labour codes treat them as special. For the first time, the law formally recognises this entire workforce and creates a dedicated social-security framework just for them.
And guess who’s paying for it? Not you, aggregator companies, which must now contribute to a dedicated welfare fund. This pool will support insurance, health coverage, disability assistance and even old-age benefits. Essentially, a social-security shield for those who’ve been operating without one for years. A new national database will also map skills, track employment history and allow benefits to follow workers across states.
Finally, the people who keep your life running on demand get protections that treat them like the essential force they are.
New Labour Laws: Key Provisions For Gig And Platform Workers
Under the Code on Social Security, 2020, the government has introduced formal definitions for “gig worker,” “platform worker,” and “aggregator.” A dedicated Social Security Fund will be created to offer welfare schemes for unorganised, gig, and platform workers.
Key features:
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Aggregators must contribute 1–2% of annual turnover, capped at 5% of payments to gig workers.
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Benefits include health, maternity, life, disability, accident insurance, and old-age protection.
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Platforms must register workers on a government Aadhaar-linked portal for benefit portability.
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The Code on Wages, 2019 ensures a statutory minimum wage for gig workers.
- The OSHWC Code governs occupational safety and working conditions.
New Labour Laws: Important Limitations And Considerations
- Not “Employees,” Not Yet: Gig workers are still not classified as employees under the new codes, which means they do not receive full employer-employee rights,only welfare-based protections.
- Benefits Still Waiting for a Green Light: Many of the welfare schemes outlined in the codes require additional notifications from the Centre and individual states before they can actually take effect.
- One Nation, Multiple Rulebooks: Several states have already enacted their own gig-worker laws, creating parallel frameworks that may overlap,or even conflict,with the central codes.
New Labour Laws: What It Means For Workers And Employers
For workers:
- Clearer wages
- Stronger protections
- Wider access to social security and benefits
For employers:
- Simplified compliance
- Fewer filings and licences
- Unified inspection and regulatory processes
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
