Labour Code Reforms 2021: Simplified Compliance for Foreign Employers

New Labour Codes: Simpler Compliance for Foreign Employers

India consolidated 29 fragmented labour laws into 4 Labour Codes, dramatically simplifying compliance for employers.

The Four Codes

• Wages Code: Uniform minimum wage, timely payment, equal remuneration
• Social Security Code: PF, ESI, gratuity, maternity benefits under one framework
• Industrial Relations Code: Easier retrenchment rules for establishments under 300 workers
• Occupational Safety Code: Consolidated workplace safety standards

Impact on Foreign Companies

Fixed-term employment now legally recognized — allows project-based hiring without permanent liability. Gig and platform workers get social security coverage. Compliance is now more predictable and less state-dependent.

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