New Labour Codes to Cut Compliance, Boost Competitiveness: Secretary

Addressing an event New Labour Codes: Implementation, Compliance to Competitive Advantage & Industry Readiness that was organised by ASSOCHAM on New Labour Codes, the senior official said that the government has undertaken extensive consultations with states to harmonise implementation frameworks and compliance mechanisms.

"The success of the labour codes will depend on strong collaboration between government, industry and workers," she said.

According to her, the reforms consolidate 29 labour laws into four labour codes, reducing 1,228 sections to 480 sections and streamlining 1,436 rules into 357 rules to simplify India's labour compliance ecosystem.

She said the government is adopting a digital-first approach under the new framework, where inspections would become risk-based, technology-enabled and focused more on facilitation than intrusive enforcement.

"The objective is to minimise unnecessary human interface and encourage voluntary compliance," Gurnani stated.

She further highlighted that workplace safety, timely wage payments and social security compliance should become key governance priorities for industries.

According to her, safe workplaces, welfare facilities and transparent wage systems directly contribute to higher productivity, workforce confidence and industrial harmony.

Calling labour reforms an opportunity rather than merely a compliance requirement, the Labour Secretary said the new framework is expected to support higher exports, increased formalisation of employment and stronger investment inflows into India.

She further added that micro, small and medium enterprises (MSMEs) are likely to benefit significantly from simplified digital compliance systems and reduced procedural complexities.

Meanwhile, Central Provident Fund Commissioner and Employees' Provident Fund Organisation (EPFO) CEO Ramesh Krishnamurthi said EPFO is rapidly expanding digital service delivery in line with the new labour code ecosystem.

He informed that EPFO is introducing API-based return filing systems, automated account transfer facilities and simplified withdrawal mechanisms to improve ease of compliance for employers and workers.

Krishnamurthi added that inspections under the social security framework would increasingly rely on data analytics and web-based systems to identify high-risk non-compliance cases, improving transparency and efficiency.

Moreover, the seminar witnessed participation from industry leaders, HR professionals, labour law experts and representatives from sectors including textiles, manufacturing, infrastructure and technology.

- IANS