New Delhi, September 24: India’s new Labour Codes are seeking to do more than simplify paperwork for employers. These are designed to connect workers with jobs and skills, widen social-security coverage and create safer, more formal workplaces, Labour Secretary Dr. Chandra Bhushan Kumar remarked on Thursday.
Speaking at a PHDCCI seminar on the practical implementation of the four Labour Codes at PHD House, New Delhi, Kumar described the reforms as a shift from a regulatory system centred on control towards greater collaboration and facilitation among the government, industry and workers.
For Indian workers, the significance of the reforms lies particularly in their focus on social security, employment opportunities, skills, workplace safety and dignity. For employers, especially MSMEs, the reforms aim to reduce the complexity of compliance by consolidating the earlier labour-law framework.
Kumar said the government has rationalised the labour framework by bringing laws together, reducing provisions, digitalising compliance and introducing e-portals and uniform return filing. Greater uniformity in the definition of wages is also part of the new framework.
He stressed that implementation of the “once-in-a-generation” reform would require cooperation between the Centre, states, industry and workers.
The Ministry is undertaking awareness and training programmes across 316 districts with industrial clusters, Kumar said, adding that state labour machinery and master trainers are also being prepared. Most states have pre-published their rules, while work continues on completing state-level rule-making and providing clarity on floor wages and other implementation issues.
Jobs, skills and social security
A key dimension of the reform is its attempt to bring employment, skills and social security closer together.
Kumar highlighted the role of the National Career Service and the integration of employment and skilling databases, including the expansion of career lounges, to improve the connection between workers seeking employment and available opportunities.
For millions of workers outside conventional formal employment, the social-security provisions could be particularly significant.
The new framework provides a stronger basis for extending social protection to gig, platform and unorganised workers, Kumar said. The Ministry is working towards connecting government welfare schemes through digital platforms to identify gaps and develop longer-term labour standards.
He also said continued interaction with industry would be necessary to develop FAQs and resolve implementation difficulties.
The reforms have attracted interest beyond India as well, with countries in the Global South seeking to understand India’s approach to building a modern labour ecosystem, Kumar said.
The discussions also brought the everyday realities of India’s workforce into focus.
Rajeev Talwar, IAS (Retd.), Director, Star Wire (I) Ltd., former CEO of DLF and former President of PHDCCI, said implementation of the four Labour Codes should go beyond regulation and address formalisation, skilling, safety and the dignity of labour and life.
He highlighted affordable housing for migrant workers as an important but often overlooked component of labour welfare. As urbanisation accelerates, housing and access to basic services are closely linked with the education, safety and skilling of workers and their families, he said.
Talwar also noted that labour reforms could raise costs for industry, making productivity and worker skilling critical for India to remain competitive in manufacturing and services.
Vineet Nahata, Chair, Economics Affairs Committee, PHDCCI, said the Codes expand social-security coverage, including to gig and platform workers, while decriminalising provisions that had acted as a deterrent to industry.
He also highlighted provisions relating to women’s empowerment and said the reforms could encourage entrepreneurship, improve management-labour relations and promote industrial harmony.
MSMEs need simple rules
For India’s vast MSME sector, the success of the reform may ultimately depend on whether the new system can be understood and implemented without excessive legal complexity.
Dr. Ranjeet Mehta, CEO and Secretary General, PHDCCI, said simple, future-ready workplaces would be critical as India seeks leadership in manufacturing and services.
He called for sector-specific compliance checklists, greater investment in awareness and training for HR teams, factory managers and contractors, and programmes reaching the district, block and industrial-estate levels.
He also stressed continued government-industry dialogue so that practical problems can be addressed during implementation.
Dr. Jatinder Singh, Deputy Secretary General, PHDCCI, similarly emphasised the need for greater awareness and clarity among employers and other stakeholders.
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