#1 out of 7
business1d ago
New labour codes: Paradigm shift in India’s employment regulation - but key is implementation - The Times of India
- The Labour Codes took effect for most provisions on November 21, 2025, consolidating 29 laws into four codes.
- Wage redefinition is central, forming the base for all calculations under the codes and could affect liabilities and take-home pay.
- The reforms aim to formalize employment, improve safety, and broaden social security including for gig and fixed-term workers.
- Experts warn about short-term costs and dual compliance as state rules align with national codes.
- The Codes promise long-term benefits like simpler compliance and stronger investor confidence through digitization.
- The reforms extend social security to unorganized workers and platform workers under the new Codes.
- Ambiguities remain on wage definitions for variable pay, stock benefits, and one-time payments needing clarity from the ministry.
- Dual compliance remains in the transition as central and state rules are being finalized.
- Organizations should classify employees, workers, and gig workers to ensure compliance and reduce risk.
- The reforms include stronger safety norms and gender and wage parity as part of modernized standards.
- Several state rules are pending alignment, requiring careful transition planning for businesses.
Vote 0



