Survey: New labour codes promise to improve daily life and streamline business operations in India.

A recent survey conducted by the V.V. Giri National Labour Institute (VVGNLI) reveals widespread support for the newly implemented Labour Codes from both workers and employers in India. The study, titled "The Implementation of Labour Codes: A Perception-based Analysis," suggests that stakeholders perceive the codes as a significant step towards improving the ease of living and doing business. The Ministry of Labour and Employment stated that the findings validate the progressive and consultative design of the Labour Codes, which were enacted during 2019-2020 and fully implemented nationwide on November 21, 2025.

The survey, which included over 6300 employees and employers, focused on the initial phase of implementation, acknowledging that the codes represent a structural reform with evolving outcomes. The study assessed awareness and understanding of the Labour Codes and their enforcement mechanisms among workers and employers.

Workers expressed a generally positive outlook on the transformative potential of the Labour Codes. Approximately 60% of workers anticipate improvements in overall working conditions, with 63% expecting better regulation of working hours and 60% anticipating enhanced rest periods and leave practices. A significant 66% believe that safety, transport, and monitoring requirements will improve protection for women workers, while 63% feel that mandatory safety equipment and protective measures will strengthen workplace conditions. Moreover, around 64% foresee improved income security through wage transparency and timely payments. Regarding social security, 68% welcome initiatives like e-Shram and Welfare Boards for easier access, and 63% anticipate greater portability for contract, migrant, and gig workers.

Employers also displayed strong support for the reforms. A substantial 76% prioritize workforce flexibility as vital for business sustainability. Around 64% consider fixed-term employment suitable for their models, and a similar percentage expect timely wage rules to promote discipline. Digital tools (71%) and uniform state-level implementation (73%) also garnered strong support. Nearly 75% favor a phased rollout, while 74% support a facilitative enforcement model. Approximately 73% anticipate long-term compliance simplification, and 62% agree that social security coverage for workers will expand.

The Labour Codes consolidate 29 existing labour laws into four codes, covering wages, industrial relations, social security, and workplace safety. Key changes include the provision of full benefits to fixed-term employees, universal application of minimum wage, and mandatory annual health checkups. The codes also mandate that basic pay constitute at least 50% of an employee's total CTC, potentially increasing statutory costs for employers. Furthermore, employers must complete the full and final settlement of an employee's wages within 48 hours of their termination or resignation.

While the survey indicates a positive initial response, some experts caution that the long-term impact of the Labour Codes remains to be seen. The codes have faced some criticism for potentially weakening worker protections and trade unions, introducing longer working hours and making it easier for employers to fire employees or shut down operations. As of January 16, 2026, only a few states have promulgated final rules under each of the codes, highlighting the need for continued efforts to ensure uniform and effective implementation across the country.

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