India Inc braces for sweeping labour overhaul, sees promise in new flexibility

Indian industry is gearing up for one of the most significant operational shake-ups in years as new workforce provisions such as reshaping salary structures, tightening compliance and introduction of mandatory health norms come into play. But despite the added responsibility, corporate leaders say the reforms could ultimately boost India’s competitiveness, TOI reported.

Companies will now have to restructure employee pay packages, provide annual health checks for all staff over the age of 40 and extend bonuses to fixed-term employees who complete one year of continuous service. But the rules also open long-awaited doors: greater flexibility in hiring women on night shifts, smoother management of seasonal workers and greater freedom to adjust factory or office hours.

Mithileshwar Thakur, general secretary of the Garment Export Promotion Council, told TOI, “The garment industry will benefit greatly from the change brought about by allowing women to work nights in all types of jobs and in all establishments. This change will immediately address the capacity building challenges in the sector and help India emerge as a major global sourcing hub for apparel.”
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This permit is a long-awaited win for the garment industry, which has been facing stiff competition from Bangladesh, Vietnam and Sri Lanka for a long time.

In the IT sector, the government reiterated that employees should be paid on the 7th of every month, in addition to strictly adhering to the principle of “equal pay for equal work”. “Nasscom will work closely with all stakeholders to help the industry navigate this change with confidence,” the industry body said. Ficci managing director Jyoti Vij noted the wider improvements, saying: “The laws increase the competitiveness of the industry through single registration, less overlap and streamlined processes, while ensuring a minimum wage for all, improved OSH standards, annual health checks, maternity and social security protections and safer night shift opportunities for women.” and transformative. “This long-awaited reform aligns India with global standards, facilitates compliance, strengthens businesses and strengthens the foundations for higher productivity, greater competitiveness and accelerated job creation,” CII director general Chandrajit Banerjee said.

As India Inc readjusts its internal systems to meet new requirements, the message from industry leaders is clear: The road ahead may be challenging, but the potential payoff is huge.

With inputs from TOI