FAQs on the Recently Implemented Central Rules under India’s new Labour Codes
FAQs on the Recently Implemented Central Rules under India’s new Labour Codes
These FAQs offer a practical overview of certain key questions that Indian employers are currently grappling with. Do note that this document is intended for general guidance and not specific legal advice. The FAQs will need to be read along with the latest federal rules, state rules and law, and official notifications from the Indian Government.
Also, please note that the substantial provisions of the Labour Codes have come into the effect from November 21, 2025, and all establishments are required to comply with the substantive provisions. This set of FAQs addresses matters flowing from the Labour Codes and the rules notified by the Central Government (“Central Rules”) under the Labour Codes.
Question 1: Do I need to implement anything in terms of procedural compliance immediately given that the Central Government has notified the rules under the Labour Codes?
Answer: Yes, but only if you are an establishment run by or under the authority of the Central Government; any industry notified as a “controlled industry” by the Central Government; railways (including metro rail), mines, oilfields, major ports, air transport, telecommunications, banking, and insurance companies; corporations, authorities, central public sector undertakings, and their subsidiaries or autonomous bodies established by a Central Act; contractors working for such establishments; and any company in which the Central Government holds at least 51% of the paid‑up share capital.
If you fall under any of these categories, the Central Rules will apply, and you need to take action.
If not, you will need to check whether the State Government has notified the rules under the Labour Codes in the relevant state. Further, there are certain provisions under the Central Rules which are applicable to private establishments – this includes registration, welfare provisions, model standing orders, etc. Therefore, while private establishments are governed by the rules notified by the relevant State Government under the Labour Codes, they would need to check and comply with certain specific provisions under the Central Rules.
Interestingly, if you are an establishment with an office in two or more states, the appropriate government would be the Central Government and you need to comply with the Social Security (Central) Rules, 2026 (“SS Central Rules”), rather than locational State rules for this law.
Question 2: Will the States adopt the Central Rules?
Answer: States will notify their own rules under the Labour Codes, which may not necessarily mirror the Central Rules. Most States have already released draft rules, with variations from the Central Rules. Therefore, at this time, it cannot be assumed that the States would implement the draft rules as-is or whether they will revise the drafts to align with the Central Rules.
From a practical perspective, since the Central Government has published the final rules, State Governments are also expected to move ahead quickly with finalising their own rules.
Question 3: I understand that there is a registration requirement under the Code on Occupational Safety, Health and Working Conditions, 2020 (“OSH Code”) and the Code on Social Security, 2020 (“SS Code”). What do I need to know and do?
Answer: Under the SS Code, every covered establishment is required to register in the manner as prescribed by the Central Government. Further, if an establishment is already registered under any extant Central labour law , it will be deemed to be registered for the purpose of the SS Code. The Central Government has prescribed Form I to be filed electronically on the Shram Suvidha Portal (https://shramsuvidha.gov.in/, the unified portal for labour law registrations in India), along with documents related to proof of address, etc.
Under the OSH Code, every covered established is required to make an application to the officer appointed by the appropriate government for registration. However, if an establishment is already registered under any extant Central labour law, it will be deemed to be registered under the OSH Code. In such case, the employer is required to furnish the details to the registering officer within such time and form as may be prescribed.
So, for next steps, you need to register the establishment under the SS Code (irrespective of whether the appropriate government is State Government), use the details of registration and furnish it to the registering officer appointed under the OSH Code once the relevant State Government publishes final rules.
Question 4: Is there a change in the definition of “wages”? If the State Government has not notified the rules, can I adopt wait and watch approach?
Answer: No, there is no change in the definition of wages under the Central Rules. The definition of “wages” under section 2(y) of the Code on Wages, 2019 (“Wage Code”) has come into effect from November 21, 2025, and should be followed for the purpose of calculating any statutory benefit under the Labour Codes.
It is pertinent to note that, while the draft Code on Social Security (Central) Rules, 2025 clarified that for the purpose of calculation of gratuity, value of meal vouchers, ESOPs, reimbursement of medical expenses, telephone and internet reimbursement, and creche allowance will not be included, the notified SS Central Rules have omitted this clarification. You may want to check internally if this omission has any impact on your compensation structure .
Question 5: I understand that the Central Government issued a notification on setting up Workers Reskilling Fund? Can I, a private company, transfer amounts to these funds?
Answer: As mentioned at FAQ (1), if you are a private company, the State Government is the appropriate government. There is thus no requirement to transfer funds to the Workers Reskilling Fund established by the Central Government. Interestingly, while the Fund has been set up by way of notification, practical implementation is still pending.
Question 6: I have certified Standing Orders. Do I need to certify it again? Or what if I do not have Standing Orders.
Answer: Not necessarily – the certified standing orders would be deemed to be standing orders certified under the Code on Industrial Relations, 2020 (“IR Code”) so far as the previously certified standing orders are not inconsistent with the IR Code or rules thereunder. Accordingly, you will need to analyse the certified standing orders of your establishment against the model standing orders notified by the Central Government.
If you do not have standing orders but have 300 or more workers, the Model Standing Orders would automatically apply to the establishment. Once adopted as‑is, these Model Standing Orders are treated as certified for your establishment, and you are required to inform the certifying officer appointed by the appropriate government. If you, however, do not wish to adopt the Model Standing Orders as-is, you will need to prepare draft standing orders based on the Model Standing Orders and certify them as per the IR Code Rules.
Note that previous exemptions provided inter alia to IT/ITeS establishments under the old Industrial Employment (Standing Orders) Act, 1946 will not continue under the IR Code. This is a significant change and will require you to relook at your current employee handbook from the purview of alignment with the Model Standing Orders.
Question 7: Can we do a 4-day work week?
Answer: A 4‑day work week is difficult to implement under the current framework.
The OSH Code caps daily working hours at 8 hours, unless overtime is paid. The Central Rules under the OSH Code only specify the weekly maximum hours (48 hours), while the daily limits can be changed only by the appropriate government. Please note that State-specific shops and establishment legislations and the rules under the Wage Code also prescribe daily working hours, which the employers will need to comply with.
Since most states have not yet notified changes allowing longer daily shifts, moving to a 4‑day work week (with longer daily hours) remains challenging in practice.
Question 8: As a private commercial establishment, am I required to provide creche facilities? Can I provide creche allowance instead?
Answer: Yes, under the SS Code, an employer who employs 50 or more employees must provide and maintain a crèche for children below 6 years of age, which should be located within 1 kilometre of the establishment (subject to relaxation in industrial parks or industrial areas where a common crèche facility is available).
Where there is no crèche facility, an option is provided under the SS Central Rules, to provide creche allowance - if agreed to between the employer and majority of employees.
Question 9: Do I continue to contribute towards EPF or are there any changes prescribed under the Labour Codes?
Answer: Given that the EPF Scheme continues to be in operation till November 2026, you can continue to make employer and employee contributions at the rate 12% of wages (as stipulated under the Wage Code) towards EPF.
Question 10: I am a private factory in Bengaluru. Do I need to comply with the welfare provisions prescribed under the Central Rules under the OSH Code, such as having an ambulance room, welfare officer, canteen, etc.?
Answer: Yes – you are required to comply with health, safety and welfare measures prescribed for factories by the Central Government.
Question 11: Do I, an IT company, need to mandatorily comply with health, safety, working conditions and provide welfare measures in the establishment?
Answer: No, these compliances are not applicable to private commercial establishments.
Question 12: Am I now required to report vacancies to career centres?
Answer: This depends on if the Central Government is the appropriate government for the establishment. The Central Government has notified 90 days from the date of the notification of the SS Central Rules as the date from which the employer in every public sector and private sector (having an office in 2 or more states) is required to report the vacancy to the career centres.
