Nearly 6 months after India rolled out its four new labour codes, the Centre is now accelerating efforts to make implementation smoother through technology-led systems, closer coordination with states, and stronger industry participation.
Centre sharpens focus on implementation
At a national seminar organised by ASSOCHAM in New Delhi on Tuesday, Labour Secretary Vandana Gurnani said the government is working with state governments and businesses to streamline implementation, reduce compliance burden and improve worker welfare.
The four labour codes — implemented last year on November 21 to replace multiple legacy labour laws — were aimed at simplifying India’s labour compliance system, improving ease of doing business, and creating a more uniform framework covering wages, industrial relations, workplace safety and social security.
Since labour is a concurrent subject, implementation requires coordination between both the Centre and state governments, making rule harmonisation a critical part of the rollout.
29 labour laws merged into 4 codes
The reform package consolidated 29 labour laws into four labour codes, significantly reducing the complexity of the legal framework.
According to the Labour Ministry, legal provisions have been reduced from 1,228 sections to 480, while rules have been streamlined from 1,436 to 357.
This simplification is expected to make compliance easier, particularly for businesses that previously had to navigate multiple overlapping regulations.
Digital compliance to take centre stage
A major part of the next phase appears to be technology-led enforcement.
The Centre indicated that inspections under the new framework are expected to become risk-based and digitally enabled rather than relying on routine manual checks. This is intended to reduce unnecessary human intervention while making monitoring more efficient and transparent.
Officials also emphasised that workplace safety, timely wage payments and social security compliance should become core governance priorities for employers.
What this could mean for businesses
For MSMEs, the shift could bring some relief by reducing paperwork and procedural bottlenecks that often made labour compliance difficult.
The government also sees the labour reforms as a tool to support formal job creation, improve investor confidence and strengthen India’s competitiveness.
EPFO expands digital systems
Speaking at the same event, Ramesh Krishnamurthi, Central Provident Fund Commissioner (CPFC) and CEO of EPFO, said, “EPFO is rapidly expanding digital service delivery to align with the new labour code ecosystem”.
He said EPFO is introducing API-based return filing systems, automated account transfers and simplified withdrawal processes to make compliance easier for both employers and workers.
He also said inspections under the social security framework will increasingly use data analytics and web-based systems to identify high-risk non-compliance cases.
Industry discusses readiness
The seminar also included discussions on industry preparedness under the new labour regime.
Key themes included the Wage Code’s impact on salary structures, compliance requirements for gig and contract workers, workplace safety standards, grievance redressal and the role of HR technology.
The participation of companies from sectors such as textiles, manufacturing, infrastructure and technology suggests that implementation readiness remains a major area of focus.