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Will the new labor laws apply to those who have been employed for a year? Learn about the benefits.
Siddhi Jain | November 22, 2025 5:15 PM CST

New Labor Laws: Will the new labor laws affect employees who have been employed for a year, and how can these changes prove beneficial for them? Learn the full story.

New Labor Laws: The new labor codes came into effect in the country yesterday, November 21st, and will directly impact millions of working people. To eliminate many long-standing employment-related problems, the government has repealed 29 old laws and implemented four new codes. Now, protections for companies and employees will be stronger than ever.

This raises a major question: Are these new labor laws only for long-term employees, or will they also affect those who have been working for a year? Many people want to know how beneficial the new laws will be for them. Let us explain.

Will the new laws apply to employees with a year of service?

The impact of the new labor codes is not limited to long-term or permanent employees. If you've been working for a year, several significant benefits will apply directly to you. The most significant change concerns gratuity. Previously, five years of service was required. Now, even one year of service will receive gratuity based on the length of service. This means that new employees will also benefit from this rule.

The new laws will enhance benefits like PF and social security. Additionally, the minimum wage will provide a significant support to those in the unorganized sector. Everyone from daily wage workers, domestic helpers, and those working in small establishments are now covered by the protected benefits zone. This means that even employees with one year of service are eligible for this change.

Major Changes in the Working Environment

After the implementation of the new laws, overtime will now be paid at least double the normal salary. Women are allowed to work night shifts with their consent and safety measures. Work from home has been formally recognized in the service sector. A two-member tribunal will be established to expedite the resolution of work-related disputes.

The Contract Labor Act will now apply only to places employing fifty or more contract workers. The threshold for factories has also been raised, reducing the regulatory burden on small businesses. Overall, the new labor codes bring greater protections for working people and clearer rules for companies.


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