Effective November 21, 2025, India’s labour regulation framework has undergone a significant transformation with the introduction of four new labour codes. Consolidating 29 existing laws into a streamlined structure, these codes set forth modern compliance requirements, aimed at ensuring universal social security and a more transparent approach to industrial relations. The Media & Entertainment (M&E) sector an industry shaped by human creativity, prolonged and irregular work hours, volatile timelines, and a largely informal workforce now faces deeper questions of worker identity, industry culture, corporate responsibility, and the future of content creation in India beneath the surface of the new compliance framework.
Code on Wages, 2019
The Code on Wages introduces standardised wage definitions and mandates the establishment of a national floor wage. With a uniform definition of “wages,” the code restricts various allowances to a maximum of 50%. Traditionally, production houses have relied on crafting crew payment structures through multiple allowances, but these new requirements will increase Provident Fund (PF), Employees’ State Insurance (ESI), and gratuity liabilities. For production budgets especially those on low-budget films, web series, or independent projects this forces a reassessment of payment structures and overall financial allocations.
Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020
The OSHWC Code brings sweeping changes to worker safety protocols along with adjustments to work hours and overtime regulations.
Worker Safety
Mandates clear safety protocols and requires provisions such as safety and annual health checkups.
Work Hours and Overtime
Caps on daily work hours and the enforcement of double overtime rates challenge the industry norm of 14–16-hour shoot days. To comply, production houses may need to expand crew sizes, adopt shift-based shooting schedules, and maintain digital attendance records.
Contract Labour & Migrant Workers
The code requires all contractors to be registered and holds principal employers liable for any lapses. This has a significant impact on production houses reliant on specialised vendors and technicians hired across states.
Code on Social Security, 2020
This Code fundamentally rewrites the employment contract for the M&E sector by bringing the large, flexible, and project-based workforce into the formal safety net.
Gig and Platform Workers
The Code formally recognises “gig workers” and “platform workers” (a substantial part of the M&E workforce) for the first time. Aggregator entities such as large OTT platforms or production entities with high annual turnover may be required to contribute 1–2% of their annual turnover (capped at 5% of the amount paid to workers) to a dedicated Social Security Fund. This introduces a predictable, non-negotiable cost layer to project budgets that was previously absent, demanding a recalculation of the Cost-to-Company (CTC) for freelance talent.
Fixed-Term Employment (FTE)
FTEs are granted parity with permanent employees regarding wages and statutory benefits. Crucially, they become eligible for gratuity after just one year of service (down from five years). This removes the sole financial advantage of using long-term contractual employment over permanent hiring, forcing production houses to budget for full benefits on any contract lasting 12 months or more.
Code on Industrial Relations, 2020
This code streamlines dispute resolution and formalises industrial relations, particularly through the use of Fixed-Term Employment (FTE) and clearer termination rules.
Formal Agreements
The Code mandates a written appointment letter for all workers, including film, audio-visual, and digital media workers, detailing their terms of employment, wages, and benefits. This significantly reduces reliance on verbal agreements and minimal documentation, mitigating the risk of future wage and employment disputes.
Standing Orders
The threshold for mandatory adoption of Standing Orders (rules of conduct) is raised, offering some flexibility for smaller studios, but the emphasis remains on transparency and formal documentation of working conditions for larger players.
Implications for Corporate Entities
For corporate entities in the M&E sector, the new labour codes mark a shift from flexible workforce practices to a more structured and compliance-oriented system. Standardised wage definitions and limits on allowances will increase Provident Fund (PF), Employees’ State Insurance (ESI), and gratuity liabilities, raising overall employee costs. The requirement to contribute to social security funds for gig and platform workers further adds to annual financial obligations. Additionally, mandatory written appointment letters and greater recognition of fixed-term employees formalise employment relationships and reduce ambiguity, but also increase administrative responsibility. Altogether, these changes push corporates to strengthen their HR processes, adopt clearer documentation practices, and plan budgets more carefully in an industry that previously operated with considerable flexibility.
Implications for Production Houses
For production houses, the new labour codes significantly increase overall workforce costs and tighten the flexibility that the industry traditionally relied on. With mandatory social security for gig workers and gratuity for fixed-term employees, even short-term or project-based teams now carry higher financial obligations. These rising costs will hit smaller, independent production houses the hardest, as they operate on limited budgets and cannot easily absorb additional compliance burdens. As a result, the sector is likely to move toward consolidation, with large studios, broadcasters, and OTT platforms gaining an advantage due to stronger financial and administrative capacity. This shift may create a two-tier industry where indie houses focus on smaller, micro-budget projects while major players dominate big-budget productions, ultimately shaping the kind of creative opportunities available across the ecosystem.
Conclusion
Collectively, the new labour codes signify a decisive break from the informal, highly flexible, and often unpredictable labour culture that has historically defined the Indian M&E industry. While they introduce higher costs and stricter compliance burdens, they also create a more equitable, transparent, and internationally aligned labour framework that elevates worker protections and enhances industry credibility. For corporates and production houses alike, the path forward lies in recalibration strengthening documentation practices, investing in compliance systems, and rethinking creative and operational strategies. Ultimately, despite short-term challenges, the new regulatory landscape positions the industry for more sustainable growth, deeper global collaborations, and a professionalised workforce ecosystem that benefits both employers and creative talent.
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