The Labour Code Revolution: Transforming Workforce Structures
A report reveals that 75% of companies are gearing up for structured fixed-term employment in response to India's new labour codes, promoting workforce formalisation. While optimism for compliance and formalisation is high, readiness disparities exist as companies navigate wage realignments and compliance transitions.
- Country:
- India
A significant shift towards structured fixed-term employment is predicted as companies adapt to India's new labour codes. The report, issued by HR solutions provider Genius HRTech, emphasizes the move towards formal, compliant, and documented employment structures.
In November 2025, India unified 29 labour laws into four comprehensive codes encompassing Wages, Industrial Relations, Social Security, and Occupational Safety to simplify compliance and enhance worker welfare. Among the 1,459 companies surveyed, readiness varies, with 40% fully prepared for implementation and notable gaps in systemic readiness and organisational confidence.
The Code on Wages is expected to impact workforce structures significantly, with adjustments in wage definitions and compliance driving cost structure changes. Despite challenges, 60% view the Labour Codes as a positive step towards formalised employment, presenting both challenges and opportunities for proactive organisations.
Google News