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Labour Codes 2025, decoded.


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Frequently asked questions

What are the different type of employment contracts permitted

Employers and Employees are free to agree to any length of contract either for a fixed term or an indefinite term, terminable on notice as stipulated in the contract. If the contract is not for a fixed term and does not state the period of notice required, the contract can be terminated by giving reasonable notice.

Is short term employment legally possible? Is there any limitation regarding the period of such employment?

Yes, short term employment is legally permissible. There is no restriction on employment on a series of short term contracts. However, someone employed on a series of or a single short term contract on a specified term for a period of 240 days or more may nevertheless establish continuity of employment, and if employed in the same job under these circumstances might plead that the job is of a permanent nature thus rendering the company liable to permanently employing that person or going through the retrenchment procedure involving various government authorities.

Can there be part time employment contracts?

Yes. A contract of employment can be for any number of hours a week on a part time basis.

Can employees be hired for an indefinite time period but bound to the execution and completion of a given work project or study?

Yes. A contract could be stated to be for the duration of a particular project and to end on its completion. The contract would need to be clear on the definition of the term completion.

Are there any minimum age requirements applicable for employment?

The minimum age of employment is 14 completed years. However, employment of children below 18 years is regulated.

Are minimum wages applicable to daily wagers and casual employees?

Yes, minimum wages are applicable to all categories of workers including daily wagers and casual employees.

Can wages be paid in kind?

No. Wages must be paid in cash or through bank transfer as per applicable laws.

Is overtime payment mandatory?

Yes. Employees working beyond prescribed hours are entitled to overtime wages as per law.

What is the maximum working hours allowed?

Generally, 8–9 hours per day and 48 hours per week, depending on applicable laws.

Are weekly holidays mandatory?

Yes. Employees must be given at least one day off in a week.

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States - Rollout Status As on 21st April 2026

Sr. No. State / UT Code on Wages
CoW
Industrial
Relations (IR)
Social Security
(SS)
OSH