Labour reforms: ILO chief stresses social dialogue; experts flag compliance, transition challenges

International Labour Organization Director-General Gilbert F Houngbo on Friday said social dialogue between government, employers and workers will remain essential as India implements the four labour codes to ensure the reforms benefit both labour and industry.



“Following with interest developments of India's new Labour Codes announced today, including on social protection & minimum wages,” he said in a post on X, adding that stakeholder engagement will be key as the rollout progresses, PTI reported.




The government on Friday notified all four labour codes, introducing reforms such as universal social security coverage for gig and platform workers, mandatory appointment letters for all employees, statutory minimum wages and timely payment, and expanded safety mandates across sectors.



Industry reactions highlight compliance changes


Sajja Praveen Chowdary, Director, Policybazaar for Business, said mandatory annual health checks for employees above 40 years mark “an important shift in how organisations view workforce wellbeing,” adding that the move strengthens preventive healthcare culture within companies.



Harpreet Singh Saluja, President of the Nascent Information Technology Employees Senate (NITES), said digitisation and portability of benefits are among the most significant changes for IT and ITES employees, who frequently move across companies and states.

“The requirement of transparent employment terms and timely wage payments will also help reduce disputes,” he said.



Rahul Ahluwalia, Founder and Director at Foundation for Economic Development, said the codes reduce compliance burden for manufacturers and provide flexibility to states on retrenchment thresholds and working-hour limits. However, he cautioned that “services sector will now be affected by a lot of the rigid laws that used to cover only factories earlier,” urging a flexible approach during implementation.



Transition and compliance alignment needed, say consultants


Akhil Chandna, Partner and Global People Solutions Leader at Grant Thornton Bharat, said that although industry expected a transition period, the notification makes implementation immediate.



Employers must “promptly assess and align their internal policies, HR practices, and operational processes” with the codes, he said, adding that compensation structures will need review due to the uniform definition of wages.



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