Labour Codes Central Rules, 2026 – Key Changes from Draft to Final

The Central Government has notified the final rules under the Social Security Code, 2020, the Industrial Relations Code, 2020, the Code on Wages, 2019, and the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code). The draft rules were published on December 30, 2025 and December 31, 2025, and the final versions were notified in May 08, 2026. Key deviations between the draft and final rules are summarised below.

• Social Security (Central) Rules, 2026

The government can no longer waive any rule provision. A new rule allows the government to take away social security benefits from an establishment or person if they misuse them, but only after giving a show cause notice. For gig and platform workers, the draft rules wrongly called aggregator payments “cess”; the final rules correctly call it “contribution”. In addition, aggregators must now register new workers within 45 days and report when a worker leaves the platform, either in real time or on a daily basis.

• Industrial Relations (Central) Rules, 2026

Model Standing Orders are no longer included in these rules; they have been issued separately as the “Model Standing Orders, 2026”. Compounding of offences is now mandatory. The officer must issue a notice for any compoundable offence, unlike the draft which provided discretion to the officers. All references to “registered post” are replaced with “speed post”. A new rule provides that a party appearing through a representative is bound by the acts of that representative.

• Code on Wages (Central) Rules, 2026

The detailed rules for calculating wages (such as calorie intake, housing rent, etc.) have been removed. The government will now prescribe these criteria through separate orders. The elaborate skill classification mechanism has been removed. The working hours framework is simplified and aligned with notifications under the OSH Code. The final rules are significantly shorter, with many operational details deferred to executive notifications.

• OSH Code (Central) Rules, 2026

The final rules add two new chapters on sector specific health and welfare provisions. Additional old rules (including those for working journalists) have been replaced. Appointment letters must now state the type of employment (regular, fixed term or contractual) and include a statement on Aadhaar consent. The list of reportable dangerous occurrences has been significantly expanded, and a new standalone framework for reporting occupational diseases has been introduced.

Credits: Aditi Kumari (Associate)