"New Labour Laws in India: Key Changes Effective February 5, 2026"
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The new labour laws in India, effective from November 21, 2025, bring significant changes for employees and employers. Here are the key details:
*Key Changes for Employees:*
- *Gratuity Eligibility*: Fixed-term employees are now eligible for gratuity after 1 year of service, down from 5 years.
- *Wage Definition*: Basic pay must constitute at least 50% of total remuneration, increasing PF and gratuity contributions.
- *Social Security*: Gig, platform, and contract workers are now covered under social security benefits.
- *Working Hours*: Standard working hours are capped at 48 hours per week, with overtime paid at double wages.
- *Leave Entitlement*: Employees are entitled to paid leave, with clearer provisions ¹ ² ³.
*Key Changes for Employers:*
- *Increased Liabilities*: Employers must contribute more to PF, ESIC, and gratuity due to the new wage definition.
- *Flexibility in Hiring*: Employers can hire fixed-term employees without long-term liabilities.
- *Simplified Compliance*: Single registration, unified returns, and retrenchment approvals are now required only for 300+ workers ¹ ² ³.
For more information, check out The Times of India
Disclaimer:
- Information is based on available data and subject to change.
- Labour laws and regulations may vary by jurisdiction.
- Verify details with official government sources or experts.
- This is not legal or professional advice.
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