India’s New Labor Codes: There is a wide discussion these days about the new labor code implemented in the country, because it can have far-reaching effects on issues like gratuity, salary structure, gig workers, women’s night shifts and contract work. Four new labor codes – Wage Code 2019, Industrial Relations Code 2020, Social Security Code 2020 and Occupational Safety, Health and Working Conditions Code 2020 – implemented across the country from November 21, 2025, have replaced 29 old labor laws that were in place since independence.

Why were new labor codes brought?

The purpose of bringing these laws was to simplify and uniform the labor system in accordance with the changing work culture, technology and new forms of employment, but experts believe that there is still ambiguity on many important points.

Speaking to ABP Live, IIMC Professor Shivaji Sarkar said that even though the new laws have been introduced as reforms, the situation regarding the definition of DA and salary is not completely clear. He said that if the allowances exceed 50 percent of the total salary, then it has been said that they should be included in ‘wages’, but no concrete guidelines have been given to control the salaries decided by the industry, due to which employers can get more benefits and employees can get limited benefits.

What are the important changes?

According to him, there is still a provision of eight hours of duty as before and work more than that will be considered overtime, and workers associated with digital and audio-visual media have also been brought under its purview, but how much this will actually benefit the employees will become clear only in the future.

These questions are arising

Shivaji Sarkar expressed concern that the promotion of contract work and abolition of the Wage Board could increase social discontent, as this could weaken the security of permanent employment. Although bringing gig and freelance workers under the legal ambit is a positive step, there are no concrete guarantees in the law on how their wages, social security and rights will be ensured.

He also raised the question that when even the regular employees remain afraid of losing their jobs, then how will the workers from the weaker section be able to resort to the courts again and again for justice. Overall, the new labor code is giving the impression that it may be easier for employers to fire employees, while there is less clarity regarding the rights and protections of employees, in such a situation it is necessary for the government to clearly define the rights, obligations and benefits contained in these laws, so that both workers and employers can get the benefit of a balanced and equitable system.

The government of Saudi Arabia has implemented new labor rules for workers involved in private homes, farms and animal husbandry. These rules have been approved by Ahmed Al-Rajhi, Minister of Human Resources and Social Development. Its objective is to provide better salary, comfort and safe working environment to the workers. These rules will especially benefit foreign workers, including a large number of Indians.

Leave and rest of workers in new rules

• At least 30 days of paid annual leave will be available every year.
• If the contract ends before the leave, leave money will be paid.
• At least 24 hours of weekly rest is mandatory every week.
• After working continuously for 5 hours, a break of half an hour (for rest and eating) is necessary.

What’s in the new rules on working hours?

• Will have to work maximum 8 hours in a day.
• For overtime, 50% extra of the basic salary will be paid.

What are the rules for employers?

• Children under 21 years of age cannot be employed.
• Workers cannot be made to do work outside their contract or profession.
• They cannot be forced to do personal work for someone else or for the employer.
• If the place of residence is far from the place of work, then food or allowance and transportation for transportation will be provided by the employer.
• The employer cannot charge the worker for visa, residence permit or related fees.
• The employer cannot retain the workers’ passports or personal belongings.
• If the worker dies, the employer will bear the expenses of the funeral or sending the body home.
• A probation period of 90 days is allowed, in which either party can terminate the contract without compensation.

What are the responsibilities of employees under the new rules?

Must follow work schedule, work diligently and protect confidential information. These new rules will strengthen the professional and safe relationship between workers and employers. Lakhs of Indian workers work in these sectors in Saudi Arabia, so they will get direct benefits. The government says that these changes will improve working conditions and bring fairness.

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