Compiled by Satyajit Roy. Open source, news articles and official publications

The New Labour Code 2025 is expected to significantly impact security services, primarily through enhanced social security for workers, including gig and platform workers, and streamlined compliance procedures for businesses. This includes benefits like improved access to social security schemes, better safety standards, and potentially easier job security for some. 

What’s Changing?
The new Labour Codes consolidate 29 existing laws into four comprehensive codes

• Code on Wages, 2019 This code deals with matters related to wages, including minimum wages, payment of wages, and related issues.
• Industrial Relations Code, 2020 This code addresses issues related to industrial relations, including trade unions, industrial disputes, and collective bargaining.
• Occupational Safety, Health and Working Conditions Code, 2020 This code focuses on ensuring a safe and healthy working environment for employees.
• Code on Social Security, 2020 This code aims to provide social security benefits to workers, including pensions, health insurance, and other benefits.

These codes are designed to modernize Indian labor laws, enhance worker protection, and promote ease of doing business. 

Key Highlights

• Wages & Working Hours Standardized wage structures, revised work hours, and updated overtime regulations.
• Industrial Relations Simplified dispute resolution, hiring, and retrenchment processes.
• Social Security Expanded PF, ESI, and gratuity benefits, including gig and platform workers.
• Occupational Safety & Health Enhanced safety standards and mandatory health checkups.

Phased Implementation Timeline

• Phase 1 Large Enterprises (500+ employees) – Immediate compliance upon enforcement.
• Phase 2 Medium Enterprises (100–500 employees) – Additional transition period post-Phase1.
• Phase 3 Small Enterprises (<100 employees) – Up to two years for full adoption.

This phased strategy is intended to give businesses sufficient time to adjust to the new requirements.

Key Impacts on Security Services

• Social Security for Gig and Platform Workers The Code on Social Security aims to extend benefits to gig and platform workers, including security personnel who may be hired on a contract basis. This means they will be eligible for social security schemes, like retirement benefits and health insurance, which was previously not the case. 
• Streamlined Compliance The new codes aim to simplify compliance by consolidating 44 central labor laws into just four codes, potentially reducing the burden on security service providers. This could lead to easier registration, licensing, and reporting requirements. 
• Improved Worker Welfare The codes emphasize the importance of worker welfare, including safety and health regulations, better working conditions, and access to grievance redressal mechanisms. This could translate to better training, equipment, and support for security personnel. 
• Potential Challenges for Employers While the new codes aim to benefit workers, they could also create challenges for employers. For example, the inclusion of gig and platform workers in social security schemes may increase costs. Additionally, the new industrial relations framework may require employers to be more careful when hiring and firing workers. 
• Increased Responsibility for Employers Employers will have increased responsibility for ensuring worker safety, providing social security benefits, and adhering to fair labor practices. 
• Potential for Increased Compliance Costs The new codes could lead to higher compliance costs for security service providers, as they need to adapt to the new regulations and ensure they are meeting the requirements. 
• Need for Skill Enhancement The new codes may also necessitate enhanced skill development for security personnel to meet the evolving demands of the industry. 

Improved Worker Benefits

The new codes will provide various advantages for workers

• Standardized Wage Definition A uniform definition to eliminate varying interpretations and minimize legal disputes.
• Formal Employment The requirement for all employees to receive appointment letters, thereby enhancing job security.
• Social Security for Gig Workers Gig and platform workers will be included in social security programs, with contributions from both employers and the government.
• Gratuity for Fixed-Term Employees Eligibility for gratuity after one year of service, aligning benefits with those of permanent employees.

These initiatives are designed to foster inclusive development and sustainable economic growth.

New Labour Code 2025 Implications for the Workforce

While the codes promise enhanced social security and potential for better work-life balance, several concerns emerge​

• Job Security The Industrial Relations Code introduces provisions that may make it easier for employers to hire and fire workers. That can potentially undermine job stability.​
• Overtime Regulations Extended work hours necessitate stringent enforcement of overtime pay and monitoring to prevent worker exploitation.​
• Inclusivity Despite provisions in the Social Security Code, ensuring that benefits extend equitably to gig and platform workers remains a challenge.​