Draft rules published by Central Government under labour codes

We are pleased to share our latest EY Alert on the draft rules published by the Central Government under the labour codes on 31 December 2025.

Following the implementation of the four labour codes effective 21 November 2025, the Central Government has pre-published draft rules on 31 December 2025 under the respective labour codes, and have invited objections and suggestions on these draft rules within 45 days (30 days for draft Industrial Relations Rules) i.e. by 14 February 2026 (by 30 January 2026 for Industrial Relations Rules).

Key aspects covered under draft rules pre-published by the Central Government:

• Clarification on ‘wages’ for determination of gratuity payment to employees
• Weekly working hours limit for requirement to pay overtime to workers
• Substituted day of rest to be provided to employees for working on rest day
• Conditions for engagement of contract labour
• Grievance redressal mechanism for on-roll employees and contract labour
• Compliance requirements under the labour codes
• Appointment letter to be issued to employees within 3 months
• Benefits to employees - Annual health examinations; Creche allowance; Employment of women at night; Journey allowance to inter-state migrant workers
• Standing orders for mines, manufacturing sector and service sector
• Worker re-skilling fund established for re-skilling of retrenched workers

Next steps: 

Organisations might undertake a holistic review across HR, Finance, Payroll, and Legal functions, supported by impact modelling and policy updates, to ensure readiness under the new labour law framework.

For further details, please contact:

Sonu Iyer
People Advisory Services
Partner & Leader - India Region
Email: Sonu.Iyer@in.ey.com

Puneet Gupta
People Advisory Services
Partner
Email: Puneet1.Gupta@in.ey.com