The Indian Chamber of Commerce and Industry, Coimbatore, has welcomed the implementation of the new Labour Codes, a major reform initiative by the Prime Minister of India, which came into effect on 21 November 2025.
The Chamber said that consolidating multiple labour laws into four simplified, modern, and transparent codes aims to protect employee rights while creating a more business-friendly environment.
According to the Chamber, all workers in micro, small, and medium enterprises will now be covered under the Social Security Code, 2020, with eligibility determined by the organisation’s employee count. Every worker will be ensured a minimum wage and access to essential benefits such as ESI, PF, and gratuity.
However, the Chamber expressed concern that the requirement for 50% PF contribution, additional employee amenities, and the need to maintain digital PF records will create extra financial pressure on industries, especially MSMEs.
At the same time, the Chamber pointed out that the new Codes offer several advantages to employers, including simplified compliance through single registration, integrated returns, and faster digital approvals. Allowing women to work night shifts with mandatory safety measures will help industries operate round the clock. A facilitation-based inspection system and third-party certification are expected to bring more clarity and professionalism to compliance management.
The Chamber noted that employee-focused measures are equally important. Guaranteed minimum wages, clear standards for working hours and safety, and enhanced welfare provisions reflect the Government’s commitment to improving worker well-being.
Gratuity eligibility has been reduced from five years to one year, and gig and platform workers have been included under social security for the first time. Benefits for women, such as maternity leave, crèche facilities, and safer workplaces, further support inclusivity.
The Chamber also highlighted some challenges, including possible increases in operational costs, the need for training to adapt to digital systems, the requirement for clarity on gig and platform worker benefits, and job security concerns for smaller companies due to the higher layoff threshold.
Despite these challenges, the Chamber said the new Labour Codes strengthen worker protection and are expected to support long-term industrial stability and productivity.
The Indian Chamber of Commerce and Industry, Coimbatore, expressed its gratitude to the Union Government for introducing this balanced and progressive reform, which modernises labour governance while safeguarding the interests of both employers and employees.
