Well Begun, Half Done: Labour Reforms Promise Easier Compliance

Jul 16, 2026

Uploaded by Anda

Labour reform in India moves from 29 laws to four rationalised Labour Codes, aiming to reshape employer–employee relations and improve compliance through clearer definitions, strike/lock-out notice rules, and broader coverage of workers. Implementation delays and state rulemaking will determine outcomes. The issue also links labour policy and enforcement gaps to corporate crises, including IndiGo’s scheduling and staffing shortfalls, amid renewed union pressure and threatened nationwide strikes.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages86

Reading Time3 h 37 min

AccessFree to download

businesstoday.in January 4, 2026 `200 WELL BEGUN, HALF DONE FROM 29 LAWS TO FOUR RATIONALISED CODES‚ LABOUR REFORMS PROMISE EASIER COMPLIANCE . INDIA INCAWAITS CLARITY ON FINAL RULES‚ EVEN AS 10 TRADE UNIONS THREATEN STRIKES FROM THE EDITOR Grounded in Labour T he era when labour strikes could paralyse India’s cities feels long past. No Dutta Samant today wields absolute power over a metropolis. Trade unions still exist, of course, but they sit atthe edges of our polity, a spent force in mainstream politics. Employment may not be a guaranteed fundamental right, yet unions were once seen as its protectors—its sword arm. That has changed. Thereforms of 1991 are often treated as the turning point. Since then, labour relations have arguably never been better, or worse, depending on where you stand. Against this backdrop, the Union government has finally codified a set of far-reaching labour reforms. The four Labour Codes promise toreshape the compact between employers and employees. Even the gig economy, now a major source of livelihood for hundreds of thousands, has been brought within the framework. On paper, this looks like progress. In practice, the devil will be in the details. Implementation is still months away, and state-level rulemaking will determine whether this monumental reset delivers for all stakeholders. Thereis alotto absorb. Even the definition of wages has been reworked. A Cyril Amarchand Mangaldas study notes that a larger workforce is now accorded protection under various provisions, and the definition of employer has expanded to cover those they engage indirectly as contract labour. Other shifts are more contentious. Earlier, notice was required for strikes and lock-outs only in public utility services. The new Industrial Relations Code widens that net—workers in any industrial establishment cannot strike without notice under specified timelines. As Surabhi explains in this issue’s cover story, the question is simple: will the new codes truly ease compliance and nudge investors to build and scale up in India? After years of navigating the old regime, industry is watching to see how the Centre and states actually roll out the rules. Unions, too, are preparing to push back—as many as 10 trade bodies are planning a nationwide strike in February. And anyone who believes industrial relations are in the pink of health needs only to look at the recent IndiGo crisis. A scheduling and crewrostering glitch brought India’s flying public to a standstill. The airline appears not to have hired enough pilots in time to meet new flight duty norms. Famous for its cost discipline, IndiGo is accused of allowing the situation to fester to pressure the government into a rollback. Regulators, meanwhile, seemed asleep atthe controls. As Richa Sharma writes, the crisis has stabilised for now. But the larger questions remain. A dominant, profitable airline, overseen by an illustrious board, simply folded for days. Not due t

Jul 16, 2026

Uploaded by Anda