India’s most significant labour law reform since Independence is set to reshape the employment landscape by simplifying compliance, improving worker safeguards, and enabling a more business-friendly environment, according to the Labour Secretary.
The government is in the final stages of replacing 29 existing labour laws with four unified labour codes, aimed at eliminating decades-old regulatory complexity. The streamlined framework is expected to reduce procedural hurdles, improve transparency, and integrate digital compliance systems to make operations more efficient for businesses of all sizes.
Officials emphasise that the reforms aim to strike a balance—providing companies with greater flexibility in hiring and workforce management, while ensuring stronger and more uniform protections for employees. Key measures include standardised minimum wages across genders, expanded social security benefits, and clearer compliance mechanisms.
A notable feature of the new framework is the inclusion of gig and platform workers—a fast-growing segment of India’s labour market. The updated codes extend formalised social protection systems to this workforce, offering benefits such as health insurance, disability coverage, and accident compensation via tech-enabled delivery platforms.
Policy analysts expect the revised regulations to boost competitiveness in manufacturing and position India more favourably within evolving global supply chains. The codes also allow for longer work shifts, night employment for women (subject to safety provisions), and relaxed hiring thresholds—changes that industry advocates believe will facilitate operational scalability.
According to estimates from SBI Research, the new framework could generate up to 7.7 million new jobs and bring down unemployment by as much as 1.3% over the medium term. Successful implementation will depend largely on state-level rollout, as labour is a concurrent subject. Officials noted that multiple stakeholder and trade union consultations have already taken place to support a smooth transition.
Once implemented, the reformed labour structure is expected to significantly modernise India’s employment ecosystem—making it more inclusive, investment-ready, and adaptable to emerging work models.
Summary
India is nearing completion of its largest labour reform effort since 1947, consolidating 29 laws into four simplified labour codes. The changes aim to streamline compliance, expand worker protections, extend benefits to gig workers, and increase flexibility for employers. The reforms are expected to support job creation, attract investment, and strengthen India’s position in global supply chains.
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