Gig Workers Are Covered
Delivery partners, ride-hailing drivers, and app-based workers now have social security coverage. Platforms like Swiggy, Zomato, and Uber must contribute 1-2% of annual turnover, capped at 5% of payments to workers.
Workers get healthcare, accident insurance, life insurance, maternity benefits, and pension-like protections. Benefits are linked to Aadhaar, so they’re portable across platforms and cities.
If your startup uses gig workers or a freelance workforce, budget for this labour compliance cost. This is a direct startup HR obligation under the Code on Social Security 2020.
Women Can Work Night Shifts
Women can now work before 6 AM and after 7 PM in any job, including hazardous work. The catch is that they must give written consent, and you must provide safety infrastructure.
Required measures include CCTV, secure transport, security personnel, and a grievance committee with women members.
This opens shift flexibility for 24/7 operations like customer support, logistics, and tech ops.
What Founders Should Do This Week
- Categorize your workforce correctly. Label each person as worker, employee, platform worker, or gig worker. Miscategorization creates compliance risk.
- Run new payroll models. Work with accountants to calculate the 50% wage restructure. Estimate increased PF and gratuity costs.
- Update employment contracts. Templates need new wage definitions, fixed-term provisions, and updated leave rules.
- Audit workplace safety. Check if you need health checkups, night shift infrastructure, or creches (if you have 50+ women employees).
- Track state rules. The Central Government set up the framework, but states will release specific registration and compliance procedures. Watch your state labour department website.
What You Don’t Need to Do Yet (During Transition)
EPF contribution mechanics are still being worked out. Continue current practices.
ESI schemes continue as-is until November 20, 2026. New digital registration systems aren’t live yet. You’ll file through existing channels until further notice.
The government confirmed that old Labour Act procedures stay in place during the transition until state rules replace them. You’re operating under new substantive rules with old procedural systems temporarily.
Why This Helps Startups
One code per subject is cleaner than 29 scattered laws. Compliance gets simpler once the transition settles.
Digital infrastructure for single registration and unified returns is coming. The new inspector model focuses on helping you comply instead of just penalizing violations.
Yes, some costs have increased. But unpredictability decreases. You can plan hiring, salaries, and headcounts with more confidence.
