The V.V. Giri National Labour Institute report, The Implementation of Labour Codes: A Perception-based Analysis, mentions that the consolidation of 29 central labour laws into four unified codes is perceived by stakeholders as a credible and forward-looking structural reform. Operationalized in late 2025, the framework aims to replace a fragmented century-old regulatory system with a technology-enabled ecosystem that balances enterprise flexibility with universal worker protection. The study captures a critical transition point where institutions are moving from legislative intent to practical field-level application.
Purpose of Labour Codes and Methodology of Report
Rationalization of Laws: Consolidation of 29 central statutes into four unified codes to eliminate overlapping definitions and fragmented thresholds.
Ease of Doing Business: Simplification through common registration, integrated digital licensing, and web-based inspection systems to reduce the “inspector raj”.
Universal Protection: Extension of statutory wage and social security protection to the entire workforce, including informal and non-standard workers.
Mixed-Methods Research: A comprehensive survey of 6,435 stakeholders (5,720 workers and 715 employers) across multiple industries and regions.
Thematic Scope: Assessment across ten dimensions including safety, wages, gender inclusion, and digitalization using a five-point Likert scale.
Workers’ Perceptions:
Improved Working Conditions: 60% of workers believe overall working conditions will improve as implementation matures.
Regulation of Hours: 63% anticipate more effective regulation of working hours and rest periods.
Social Security Optimism: 68% endorse registration systems like e-Shram for facilitating access to benefits, while 63% value the portability of benefits.
Safety Confidence: Strong realization (3.7 weighted score) regarding the clarity of employer responsibility for workplace safety.
Uncertainty Gaps: Lower clarity in administrative areas such as wage documentation (3.2 score) and the speed/fairness of dispute resolution.
Employers’ Perceptions:
Workforce Flexibility: 76% of employers believe flexibility is essential for business sustainability, with 64% favoring fixed-term employment models.
Implementation Focus: 73% associate the success of the reform with the manner of implementation rather than just the statutory text.
Digital Endorsement: 71% view digital compliance portals as essential for reducing administrative burdens and enhancing transparency.
Facilitative Enforcement: 74% express a clear preference for a facilitative, supportive approach to enforcement over traditional punitive models.
Operational Challenges: 60% recognize administrative complexities in extending social security to gig and contract workers.
Convergence of Perceptions:
Safety Consensus: Both groups strongly agree that the Codes clearly define safety standards and employer responsibility.
Social Security Expansion: Shared acceptance of broader social protection goals, particularly for vulnerable worker categories.
Digital Governance: Unified support for technology-enabled compliance as a tool for transparency and efficiency.
Gender Inclusion: Common acknowledgement of the Codes’ intent to support women’s workforce participation through safety and transport mandates.
Challenges:
Transitional Uncertainty: High incidence of “cannot say” responses among both groups regarding procedural details and statutory interpretation.
Communication Gaps: Only 36% of employers report receiving official communication, indicating uneven institutional outreach.
Regional Variation: Differences in institutional preparedness and awareness across states and firm sizes.
Complexity of Non-Standard Work: Significant uncertainty regarding contribution responsibilities for gig and platform workers (3.1 score).
Recommendations:
Phased Rollout: Continue the phased implementation strategy to allow for organizational and administrative adjustment.
State-Level Impact Studies: Conduct detailed state-level assessments to identify peer learning opportunities and refine local strategies.
Targeted Awareness Generation: Launch systematic communication campaigns focusing on the specific “administrative” gaps identified in the study.
Capacity Building: Strengthen the M&E capabilities of enforcement agencies to transition toward the “facilitative” model requested by stakeholders.
Policy Relevance
The study provides early empirical legitimacy to the Labour Codes, showing alignment between stakeholder acceptance and institutional logic. Early legitimacy provides a strong base to deepen awareness, standardise state implementation, and strengthen digital systems to translate positive perceptions into durable outcomes for workers, enterprises, and India’s growth trajectory.
Formalisation and social security expansion: Portability via e-Shram and Welfare Boards extends coverage to migrant, contract, and gig workers, reducing informality risks.
Workplace safety and gender inclusion: Uniform OSH norms and transport/safety provisions strengthen protection, especially for women, across sectors.
Compliance simplification and digital governance: Single-window, tech-enabled compliance lowers transaction costs for MSMEs while improving regulatory predictability.
Industrial harmony and dispute prevention: Clear rules on wages, hours, and strike notices foster dialogue and reduce conflict intensity.
Investment confidence and productivity: Predictable labour relations and flexibility support enterprise growth, job creation, and long-term competitiveness.
Follow the full report here: V.V. Giri National Labour Institute: Labour Codes Perception Study
