India's Labour Codes: Big Bang Reform!

India has implemented a sweeping reform by consolidating 29 existing labor laws into four comprehensive codes. This move is poised to significantly enhance worker welfare and boost the competitiveness of enterprises. The new framework aims to streamline compliance for businesses, modernize labor practices for the digital age, and expand social security benefits to gig and platform workers.

The consolidation simplifies a fragmented legal landscape, reducing compliance burdens and creating a more predictable environment for both domestic and global investors. Provisions like mandatory appointment letters, gratuity for fixed-term employees, and expanded social security coverage underscore a commitment to worker protection. This reform aligns India's labor norms with global standards, crucial for its ambition to become a manufacturing hub.

With increased portability of benefits and formal recognition of gig work, the codes support India's mobile and evolving workforce. Provisions for women working at night and simplified layoff procedures also signal a push towards gender equality and operational flexibility. These changes are expected to attract manufacturing investment and bolster India's position in global value chains.