Centre-state collaboration: A must for effective labour reforms

From national floor wages to fixed-term employment, the reforms introduce long-awaited changes, but uniform state-level adoption is key to avoiding fresh complexity

India’s labour law reform is among the most consequential structural changes in decades. By consolidating 29 central legislations into four comprehensive Labour Codes—the Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code—the government has laid the groundwork for a modern, inclusive, and competitive industry ecosystem.

 

The promise is clear: simpler compliance, better worker protection, and greater flexibility for employers. Yet, as with any major reform, the true impact will depend on how quickly ambiguities are resolved and how effectively the Centre and states work in lockstep