The Southern India Mills’ Association (SIMA), representing the entire textile value chain in South India, has played a leading role since its inception in shaping various legislations directly and through allied organisations.
The Association has continuously approached the Government to simplify antiquated labour laws and introduce a unified labour code, enabling India to become a global leader in social accountability.
The Government of India has now announced the implementation of the Industrial Relations Code, 2020; the Code on Social Security, 2020; the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020; and the Code of Wages, 2019. These codes, effective from 21 November 2025, rationalise 29 existing labour laws.
In a press release issued on 22 November 2025, Durai Palanisamy, Chairman of SIMA, appreciated the Prime Minister for the bold and path-breaking initiative to simplify labour laws while protecting the interests of both employers and employees, supporting the nation’s march towards Viksit Bharat.
He stated that the implementation of these labour codes is a historic achievement and marks another milestone in the series of transformational reforms introduced in the taxation and regulatory framework.
Durai Palanisamy added that the new labour codes would enable industries to comply with global social accountability norms prescribed by leading countries such as the European Union and the United States.
He pointed out that the EU requires exporting nations to comply with the Corporate Sustainability Due Diligence Directive (CSDDD) to access its market. He further noted that the new policy initiatives would help the industry take advantage of the Free Trade Agreements (FTAs) expected to be concluded with the EU and the US in the near future.
Some of the salient features of the new labour codes include relaxation in working hours, flexible fixed-term employment, a level playing field in compliance costs, simplified legislation, ease of doing business, pan-India certification, single licensing and registration, and mandatory health check-ups for workers.
The codes also mandate the issuance of appointment orders, encourage the employment of women workers with enhanced safety provisions for night shifts, and introduce annuated gratuity benefits.
Although the cost to companies may increase due to extended welfare benefits under the new labour codes, SIMA emphasised that the interests and well-being of workers are well protected.
