Labour Law News

India has finally begun to clear the regulatory thicket that has long constrained private enterprise, but the effort must pick up pace. We must aim for true economic freedom. Every business needs space to breathe, grow and compete on fair terms.

The reflexive use of the word ‘reform’ to describe every policy change risks stripping the word of meaning. Moves like GST rationalization and labour law revisions need to be put to a test: Do they improve things for all stakeholders?

India’s four labour codes are broadly welcome, but they miss addressing the concerns of workers in the services sector, where mass layoffs are common. Should the codes not have made provisions for a stronger safety net for those vulnerable to a sudden job loss? Advanced economies offer cues.

The four new labour codes notified on 21 November come with a mixed set of implications for employees.

India’s labour codes have triggered strikes, but labour unions should look at what serves the nation’s interests, including their own. The new framework has space for mechanisms of labour deployment and representation that work for everyone. Here’s how.

The labour codes aim to make employment generation sustainable by reducing unnecessary regulatory burdens while prioritizing worker welfare. Simplifying compliance and expanding social security supports investment and formalization and could yield a labour market that’s more efficient and equitable.

India's labour codes offer a path to a secure workforce, but their new definition of ‘wages’ could mean lower takehome pay in lieu of larger retiral benefits. Employees may grumble, but empathetic messaging could get them around.

The labour codes can be implemented operationally only after each state prepares and notifies their respective rules.

This is a pivotal moment. Now that India’s four labour codes have been notified, we have an opportunity to create a new employment ecosystem and align economic ambition with human dignity. We must seize it.