ARTICLE · 20 JANUARY 2026

Impact On Employers: Navigating The New Labour Code

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India's labour landscape is undergoing one of its most significant reforms in decades.

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India's labour landscape is undergoing one of its most significant reforms in decades. The Central Government has consolidated 29 labour laws into four comprehensive Labour Code the Code on Wages, 2020, Industrial Relations Code, 2020, Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) and the Social Security Code, 2020. Phased implementation underway: large firms (>500 employees) from FY26, medium (100-500) next, small (<100) by FY28; some states pending rules

For employers, the transition to the new regime will require careful planning, updated HR frameworks, policy revisions, and budget preparedness. The shift is not merely regulatory it will influence payroll design, workforce deployment, social security planning, and industrial relations.

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