ARTICLE · 03 FEBRUARY 2026

Labour Code Compliance In M&A Transactions – A Practical Guide

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The consolidation of 29 labour laws into 4 labour codes marks a paradigm shift for companies, especially those currently involved in corporate transactions.

IndiaEmployment and HR

Harinie Seenivasan

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The consolidation of 29 labour laws into 4 labour codes marks a paradigm shift for companies, especially those currently involved in corporate transactions. The consolidation now requires parties to undertake a rigorous reassessment of traditional due diligence and integration strategies. As the new framework introduces significant changes that directly influence deal valuation and post-closing liabilities, parties should focus on labour due diligence to precisely assess the potential financial impact of transactions.

This guide outlines the essential steps and considerations that businesses should implement to navigate labour code compliance during an M&A process:

Step

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