‘Inspector raj’ ends as Centre operationalises new labour codes, says Minister Mandaviya

Union Minister Mansukh Mandaviya on Tuesday said the Centre has fully operationalised the four new labour codes, describing the reform as a step that balances worker welfare with ease of doing business.

Addressing the CII Annual Business Summit 2026 in New Delhi, Mandaviya stressed that industry and labour must work in tandem and evolve with changing economic conditions to ensure smoother coordination and growth.

Consolidation of labour laws into unified framework

The minister noted that the reforms bring together 29 central labour laws into a streamlined and modern framework. After a wait of more than five years, the government notified the rules earlier this month, making the codes fully functional. These include the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020, which came into force on November 21, 2025.

Mandaviya said the overhaul aims to dismantle the old "inspector raaj" system by introducing single registration and a unified compliance window for businesses. He added that "now labour inspectors are made facilitators and they give ample chances to comply with laws".

Emphasising the government’s broader approach, he said "our government pro-poor, pro-farmer and also industry friendly," underlining that both labour and industry are equally critical to the country’s growth story.

Worker welfare measures and compliance reforms

The minister highlighted that the new framework ensures parity in wages for men and women and pointed out that job creation depends on wealth generation by businesses. He also reiterated that the reforms guarantee minimum wages and extend social security coverage to all workers.

Key provisions under the new regime include mandatory appointment letters, free annual health check-ups for workers above 40 years of age, and equal opportunities for women across work shifts. The rules also fix the weekly working limit at 48 hours, mandate at least one weekly rest day, and ensure overtime compensation for additional hours.

Calling the implementation a significant milestone, Mandaviya said the changes will strengthen worker protection while simplifying business operations, creating a more balanced labour ecosystem.

Referring to the ongoing tensions in West Asia, he also urged restraint in the use of petroleum products and discretionary spending such as gold purchases, echoing the appeal made earlier by Prime Minister Narendra Modi.