The Indian real-estate and construction sector, which employs a significant number of organised and unorganised workers in the country, has embarked on a paradigm shift in its regulatory framework from an employment law perspective. With the four Labour Codes – the Code on Wages, 2019 (Wage Code); the Industrial Relations Code, 2020 (IR Code); the Code on Social Security, 2020 (SS Code) and the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) – coming into effect in India from November 21, 2025, the industry is shifting away from a fragmented, contractor- driven compliance environment to a consolidated and standardised framework. The new Codes and consequent transition have major implications for developers and contractors, as they reshape cost structures, redistribute risk and alter labour management practices. However, while the objective of the Labour Codes is simplification and modernisation, their implementation reveals increasing friction between legislative intent and on-ground execution. A key aspect is the differentiation between “workers ” and “employees ”, which affects eligibility for social security such as gratuity, compelling organisations to revisit their workforce classification and contractual arrangements.Another significant change under the Labour Codes is the introduction of a uniform definition of wages, where the wages must constitute at least 50 per cent of the total remuneration . This change directly impacts the calculations for Employees Provident Fund (EPF) contributions , gratuity , overtime payment , and retrenchment benefits  under existing labour laws. In the real-estate and construction sector, where wage structuring is allowance-heavy, any incorrect classification of wage components is likely to trigger inspections, disputes and litigation. Further, the impact is enhanced by changes to gratuity eligibility, wherein the fixed-term employees  and project-based employees who are widely used in the construction sector are now entitled to gratuity after completing one year of service on a pro-rata basis  instead of the earlier five-year threshold. This anticipated rise in labour costs will require developers and contractors to reassess project budgets and cash flow planning. On the operational compliance front, the OSH Code brings increased responsibilities for employers in the construction industry as a whole. For establishments employing 500 or more workers, the formation of Safety Committees  has been made mandatory, marking an important transition towards safety as an organised effort, as opposed to the previous focus on safety as a procedural aspect of compliance. The OSH Code further mandates free annual health check-ups  for workers and requires employers to issue appointment letters clearly setting out job roles, wages and social security coverage , signalling a move towards greater formalisation and transparency in employment relationships.Significantly, the use of contract labour is only permitted in non-core activities, and the responsibility of providing statutory welfare facilities , such as canteens, toilets, drinking water, first aid and the like, could solely rest with the principal employer  for compliance. As a result, developers and principal employers will be required to directly assume these responsibilities, necessitating a corresponding restructuring of EPC contracts to clearly allocate and address these enhanced compliance obligations. Additionally, employers are now permitted to self-assess the Building and Construction Workers’ cess liabilities , which reduces procedural delays and administrative intervention by the authorities while also increasing the accountability of employers at the project level.Under the IR Code, retrenchment obligations largely remain unchanged, with employers required to notice periods and compensation equal to 15 days average pay for every completed year of service . However, the employer is further obligated to make an additional contribution to a worker reskilling fund, which is equal to 15 days of wages, over and above retrenchment compensation . These changes apply even in project closures or downsizing scenarios.Construction continues to rely heavily on interstate migrant workers, whose dependence became particularly visible during the COVID-19 pandemic when many faced severe hardship owing to lack of registration and access to basic welfare support. Under the OSH Code, employers and contractors are now required to register such workers, maintain prescribed records, and provide journey allowances, accommodation and access to welfare facilities . The scope of interstate migrant workers has been widened to include those employed directly by establishments, engaged through contractors, as well as workers who migrate independently in search of employment , with the establishments required to declare the number of such workers to the labour authorities. The eligible migrant workers are now entitled to an annual lump-sum journey allowance for travel to their native place , benefit of public distribution system (PDS) , portability of benefits under the Building and Other Construction Workers’ welfare cess framework , and assistance through a toll-free helpline . These measures are intended to improve continuity of welfare and social protection for a highly mobile workforce. Any gaps in compliance, documentation or the provision of statutory benefits may attract regulatory scrutiny and give rise to disputes between workers, contractors and principal employers.The regulatory framework has also been modernised through digital integration. Traditional labour inspectors are being replaced by the Inspector-cum-Facilitators, who are carrying out inspections online using the Shram Suvidha Portal through real-time reporting. Additionally, workers are required to be registered on the e-Shram portal using their universal account number associated with the Aadhaar number for the purpose of easier tracking of their employment and social security rights. Despite such intended reforms, a major gap is noticed between what is provided by law and how it is actually implemented. The findings from field research carried out at some of the Peenya industrial clusters in Bengaluru indicated that awareness about the Labour Codes is very poor – only 34 per cent workers have knowledge about them, while 42 per cent have no knowledge about their modified entitlements . The requirement for social security benefits is also not met since only 36 per cent of workers have partial benefits, while 44 per cent have no benefits at all in terms of EPF and Employees’ State Insurance . While the Labour Codes have come into effect, complete implementation is still awaited as the relevant central and state rules are yet to come into effect. On December 3, 2025, the Central Government indicated that complete operationalisation will be done from April 1, 2026, coinciding with the new financial year.In conclusion, although the Labour Codes represent a significant modernisation and consolidation of India’s labour regulatory framework, implementation also necessitates that real-estate and construction businesses carefully reassess workforce classification, wage structures and contracts; manage increased labour costs and obligations; and ensure strong digital compliance. Successful implementation will, therefore, require increasing awareness among workers and employers, strengthening compliance systems and strategic planning to ensure smooth operations and minimise disputes.2(zr) of the IR Code2(l) of the IR CodeSection 2(y) of the Wage CodeSection 16(1) of the SS Code read with Section 17 of the SS CodeSection 53(2) of the SS CodeSection 27 of the OSH CodeSection 70 of the IR CodeSection 2(o) of the IR CodeSection 53(2) of the SS CodeSection 22 of OSH CodeSection 6(1)(c) of the OSH CodeSection 6(1)(f) of the OSH CodeSection 6 of the OSH Code read with Section 23 and 24 of the OSH CodeSection 53 read with Section 55 of the OSH CodeSection 103 of the SS CodeSection 70 of the IR CodeSection 83 of the IR CodeSection 59-65 of the OSH CodeSection 2(41) of the OSH CodeSection 61 of the OSH CodeSection 62(a) of the OSH CodeSection 62(b) of the OSH CodeSection 63 of the OSH CodeDr Parameshwara and Manasavani B S, “Evaluating the Socio-Economic Impact of India’s New Labour Codes: A Study of Workers and Employers in Peenya Industrial Cluster, Bangalore”-International Journal of Environmental Sciences. (Vol. 11 No. 4, 2025)Dr Parameshwara and Manasavani B S, “Evaluating the Socio-Economic Impact of India’s New Labour Codes: A Study of Workers and Employers in Peenya Industrial Cluster, Bangalore”-International Journal of Environmental Sciences. (Vol. 11 No. 4, 2025)