Finshots Daily India’s new Labour Codes explained
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Nov 25, 2025 Dive into India's significant labour reform, reshaping outdated laws into four streamlined codes. Discover how new rules on wages redefine salary structures and impact your take-home pay. Explore the industrial relations changes aimed at hiring flexibility and the formal recognition of gig workers. Learn about the threshold for layoffs and enhanced safety regulations, even for small companies. The discussion highlights the balance between flexibility for employers and security for workers, ensuring that successful implementation is key to these changes.
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Major Consolidation Of Labour Laws
- India consolidated 29 scattered labour laws into four unified labour codes to reduce contradictions and compliance burdens.
- The reform aims to extend coverage and clarity across different worker types and jurisdictions.
Four Codes That Reshape Work Rules
- The four codes cover wages, industrial relations, social security, and occupational safety in a unified way.
- Each code changes definitions and entitlements that affect pay structure, hiring, safety, and benefits.
Prepare For Easier Workforce Restructuring
- Employers can hire with more confidence because firms with up to 300 workers can lay off or close without prior approval.
- Workers and unions should push for stronger safeguards as bargaining power shifts toward employers.