The Government of India has consolidated 29 central labour laws into four new labour codes that will come into effect from November 21, 2025. These codes aim to simplify labour laws, protect workers, and ease compliance for businesses through phased implementation.
Under the new labour laws, employers will be mandatory required to provide two types of compensation to terminated employees, along with a reskilling fund equivalent to 15 days’ wages. This amount must be deposited into the employee’s bank account within 45 days of termination.
This provision forms part of the Industrial Relations Code 2020 and is designed to encourage employees to learn new skills and find employment again. The measure ensures that workers will not face immediate financial difficulties upon sudden job loss, as the extra 15 days’ salary and compensation will provide a financial cushion.
The financial assistance will help individuals in their job search activities. Implementation of this provision is also expected to curb arbitrary behaviour by companies, as employers will no longer be able to delay full and final settlements indefinitely. Companies will now have a strict 45-day deadline to complete all payments.
With clearer rules in place, the process will become more simplified and transparent. Given the current environment of technological changes, economic uncertainties, and various other factors that keep job loss threats high across the country, this new government decision will provide much-needed financial security to employees.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
