New labor codes: What changes for work-from-home employees
24 Nov 2025

The Indian government has introduced new labor codes to address the growing trend of remote work in the post-COVID-19 world.

The codes clarify several issues faced by work-from-home employees, including their rights and benefits.

One major change is that remote work in the service sector can now be done by mutual consent between employer and employee, giving more flexibility to both parties.

New labor codes ensure overtime compensation
Overtime regulations

The new labor codes also address the issue of overtime compensation. If an employee works beyond their regular shift, they are entitled to overtime pay at double the normal wage rate.

The earlier uniform cap of 75 hours per quarter for overtime has been removed, with states now having the power to set higher limits.

This change could benefit workers looking for extra income but may also lead to longer shifts being normalized.

Health check-ups and ESIC coverage under new codes
Employee benefits

The new labor codes also mandate employers to provide free annual health check-ups for employees aged 40 and above. This is aimed at promoting preventive care among workers.

Further, the Employees's State Insurance Corporation (ESIC) coverage has been expanded beyond notified areas to cover the entire country, including plantations and smaller/hazardous units meeting certain thresholds.

Commuting accidents now considered employment-related
Accident coverage

The new labor codes also consider accidents during travel between home and workplace as employment-related.

This means such incidents are now eligible for compensation under the new regulations.

The changes in the labor codes aim to provide more clarity and protection to all employees, including those working from home, ensuring their rights and benefits are not compromised.