These labour codes came into effect on November 21, 2025, and brought wide-ranging changes for both employers and employees. How do the labour codes impact you? Will your gratuity pay-out increase? What are the rules for leave encashment? Will your take home pay come down? Alongside employee-focused measures, the reforms are also intended to give businesses greater operational flexibility while ensuring regulatory clarity, an aspect considered crucial amid ongoing global economic uncertainty. In the past, outdated labour regulations had discouraged foreign investment in India’s manufacturing sector, with many companies preferring countries such as Vietnam and Bangladesh for setting up production facilities. Under the new framework, workers receive several important benefits, including universal minimum wages, gratuity entitlements, broader social security coverage, mandatory appointment letters, recognition for gig,platform workers, and provisions allowing women to work night shifts.