New Labour Law: The Government of India has consolidated 29 central labor laws into four new labor codes. These four new labor codes aim to simplify labor laws, protect workers, and ease compliance for businesses. These four codes are effective November 21, 2025. The various provisions of the new labor laws are being implemented in a phased manner.
Millions of people in the country are employed. It’s often seen that after losing their jobs, these employees face financial uncertainty and mental stress. Under the new labor laws, effective November 21, 2025, it will be mandatory to provide two types of compensation to employees upon termination, plus a reskilling fund equivalent to 15 days’ wages.
It must be deposited into the employee’s bank account within 45 days of termination. This provision is part of the Industrial Relations Code 2020. It aims to encourage employees to learn new skills and find employment again. After this provision is implemented, employees will no longer face financial difficulties if they suddenly lose their jobs. The extra 15 days’ salary and compensation will help protect them from future financial difficulties.
This financial assistance will help individuals find new jobs. Implementation of this provision will also curb the arbitrary behavior of companies. Companies will no longer be able to delay the full and final settlement by taking their own time; they will be given a 45-day deadline. With the rules now clarified, the process will be simplified and transparent. Due to technological changes, economic uncertainties, and many other factors, the threat of job loss remains high in the country. Therefore, this new government decision will provide financial security to employees.
