Labour reforms timely development, say experts

New Delhi: The latest labour reforms are a timely development for India as the country witnesses rapid advancements in AI while continuing to prioritise and protect the interests of its workforce, experts said.

In a landmark overhaul of labour laws, the government on Friday notified all four Labour Codes, ushering in major reforms, including universal social security coverage for gig workers, mandatory appointment letters for all employees, and statutory minimum wages and timely payment across sectors.

Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co, said it is a moment for employers to proactively reassess workforce structures, update employment documentation and realign compliance systems to ensure a smooth, risk-free transition to the new regime.

Sajai Singh, Partner - JSA Advocates and Solicitors, said, "Allowing women to work on night shifts in various sectors and recognition of gig workers and their rights stand out as progressive moves that recognise the times we live and work in.

Puneet Gupta, Partner, People Advisory Services, EY India, said with the implementation of four Labour Codes formal employees gain stronger protections and uniform benefits, while gig and platform workers are included in social security schemes for the first time.

This transformation will reshape compensation structures, H R policies, and employment models, creating a more inclusive and future-ready labour ecosystem.

Sudhakar Sethuraman, Partner, Deloitte India, said the much-awaited Labour Codes—originally granted Presidential assent in 2020 - have officially come into effect today. Designed to consolidate 29 existing labour laws, these codes bring greater uniformity to wage structures and key employment-related provisions.

The compliance framework is aimed to be simpler, consistent, and easier for stakeholders to navigate. Suhail Nathani, Managing Partner, Economic Laws Practice, said.

The transition will require substantial operational changes across industries, but in the long run, the codes are expected to bring the informal workforce into a safer regime, improve transparency, and better align India’s labour market with global standards, and indeed in some examples with human rights as well.

Anshul Prakash, Partner at Khaitan & Co said, "Part implementation for Code on Wages and Code on Social Security is on expected lines. That said, much would now depend on the ground level machinery of facilitators at central and state levels who will be expected to approach the enforcement of these laws with a conciliatory mindset instead of that of prosecution for any non-compliance.

"Practical bottlenecks may come up in respect of Rules under these codes that would need to be made effective by respective State governments."