Labour code implementation provides flexibility, simplification to export firms

New Delhi, Nov 22 (PTI) The implementation of labour codes will help strengthen the country's export ecosystem as it provides flexibility, simplification, and predictability, which are essential to compete in volatile global markets while meeting international compliance requirements, an official said on Saturday.

The commerce ministry official said that for workers, the same provisions ensure fair wages, social security, safety, equality, and avenues for upskilling and dignity of labour.

In a landmark move, the government on Friday implemented the four labour codes, pending since 2020, introducing worker-friendly measures like a timely minimum wage for all and universal social security, including gig and platform workers, while allowing longer work hours, broader fixed-term employment, and employer-friendly retrenchment rules.

The commerce ministry official said that each of these provisions under the codes contributes in a distinct yet interconnected manner to the strengthening of India's export ecosystem.

"For export-oriented industries, the codes provide flexibility, simplification, and predictability essential to compete in volatile global markets while meeting international compliance expectations," the official said.

Introduction of a uniform definition of "wages" across all labour codes would eliminate the ambiguity created by multiple, inconsistent definitions in earlier laws, the official said adding for export-oriented industries operating in multiple states, it simplifies payroll administration and compliance, ensuring uniformity in wage calculations for social security contributions, bonus, and gratuity.

For export industries functioning across states, national floor wage and minimum wage rationalisation offer predictability in labour cost structures and eliminates regional disparities.

"The prohibition of gender-based discrimination in recruitment and wages ensures equal remuneration for equal work. For export industries, this aligns domestic practices with international labour and human rights standards, particularly those demanded by global retail and sourcing partners," the official said.

The provision permitting employment of women during night shifts, subject to their consent and adequate safety measures, greatly benefits export industries that function on a 24-hour production cycle to meet international orders.

Industries in sectors like apparel, electronics, and IT-enabled services can now legally employ women during late hours with proper transportation, security, and welfare arrangements, the official said.

Further raising the threshold for prior government approval for lay-off, retrenchment, or closure from 100 to 300 workers offers industries operational flexibility to adjust to changing export orders and global market conditions.

"This provision gives exporters the confidence to expand employment during peak demand periods without the fear of excessive rigidity during downturns," the official said adding export-oriented industries, which are frequently audited by overseas clients and certification agencies, gain credibility through transparent and traceable digital documentation.

Similarly, under the provisions of the labour codes, the plantation workers' rights have been consolidated, expanded and made portable.

About 2 lakh exporting units are there in the country which employ over 50 million people. The country's goods and services exports touched an all-time high of USD 825 billion in 2024-25. PTI RR ANU ANU