VVGNLI Study Finds Rising Trust in Labour Codes Among Workers, Employers

An independent perception-based study by the V.V. Giri National Labour Institute (VVGNLI), Noida, has found growing confidence and broad-based acceptance of India's Labour Codes among both workers and employers, underscoring their potential as a transformative labour reform.

Titled "The Implementation of Labour Codes: A Perception-based Analysis", the study highlights convergence in stakeholder views and presents the Labour Codes as a balanced reform framework that aligns labour protection with economic efficiency, institutional rationality, and ease of compliance. The findings suggest that, even in the early phase of implementation, the Codes are being perceived as strengthening social security, modernising labour relations, and improving both ease of living for workers and ease of doing business for employers.

Independent Assessment of a Structural Reform

The VVGNLI study focused on the initial phase of Labour Code implementation, recognising that the Codes represent a long-term structural reform whose full impact will unfold progressively over time. Workers' perceptions were captured through one-on-one interviews and focused group discussions, while employers' views were drawn from leading chambers of commerce, employer federations, and industry associations representing large enterprises, MSMEs, and small businesses.

The primary objective of the survey was to assess awareness, understanding, and early perceptions of the Labour Codes and their enforcement mechanisms across key stakeholders.

Workers See Better Conditions, Stronger Protection

The study reveals a largely optimistic outlook among workers regarding the Labour Codes' potential to improve workplace standards and social protection.

Around 60% of workers believe overall working conditions will improve, while 63% expect better regulation of working hours. A similar proportion anticipates enhanced rest periods and improved leave practices. Workplace safety also emerged as a major area of confidence, with 66% of workers believing that strengthened safety, transport, and monitoring provisions will significantly improve protection for women workers. About 63% feel that mandatory safety equipment and protective measures will lead to safer workplaces.

On wages and income security, nearly 64% of workers foresee improved income stability due to greater wage transparency, and 54% expect more timely wage payments. Social security provisions received particularly strong support, with 68% welcoming initiatives such as e-Shram registration and Welfare Boards for easier access to benefits, and 63% recognising improved portability of social security for contract, migrant, and gig workers.

Employers Back Simpler Rules, Digital Systems

Employers have expressed strong support for the Labour Codes, particularly in areas of regulatory simplification, operational flexibility, and long-term compliance efficiency.

Workforce flexibility was identified as critical for sustainability by 76% of employers, while 64% consider fixed-term employment suitable for their business models. An equal proportion expects clearer and timely wage rules to improve wage discipline. Digitalisation and uniformity also feature prominently, with 71% backing digital compliance tools and 73% supporting uniform implementation across states.

Nearly three-fourths of employers favour a phased rollout of the Codes, and 74% endorse a facilitative, rather than punitive, enforcement approach. About 73% predict that the Labour Codes will significantly simplify compliance requirements in the long run, while 62% agree that social security coverage for workers will expand under the new framework.

Government Sees Validation of Reform Approach

The Ministry of Labour & Employment has described the study's findings as a validation of the progressive and consultative design of the Labour Codes, which were enacted during 2019–2020 and notified nationwide on 21 November 2025.

Union Minister for Labour and Employment Dr. Mansukh Mandaviya said the study reinforces the core objectives of the reform. "These findings underscore the Labour Codes' objective of promoting social security for all, decent work, formalisation, and inclusive and sustainable growth in India's diverse labour market," he stated.

Next Phase: State-Level Impact Assessment

The Government has reiterated its commitment to strengthening Labour Code implementation through capacity building, awareness campaigns, and phased state-level roll-out. As the Codes take effect across all States and Union Territories, the study makes a strong case for detailed, phase-wise state-level impact assessments, particularly in states that had introduced similar reforms prior to the national rollout.

Such evidence-based evaluations would enable peer learning among states, refine implementation strategies, and ensure that the transformative potential of the Labour Codes is realised in a manner that is inclusive, sustainable, and responsive to the needs of India's evolving workforce.