Bigger companies are already in transition mode for full implementation of the new labour codes, and many of them have already implemented many of the provisions. Nevertheless, smaller companies are struggling with the rules and definitions, structural changes, and financial implications. Officials in the Union Ministry of Labour say that implementing the codes at the start of the financial year 2026-27 would help the companies manage the potential impact on their balance sheets.
Union Ministry of Labour and Employment had published on December 31 the draft rules for the four new labour codes –the Code on Wages 2019; the Industrial Relations Code 2020; the Coded on Social Security 2020; and the Occupational Safety, Health and Working Conditions Code 2020. The ministry has also invited comments from stakeholders within 30 to 45 days. All these suggests that the rules that are to be finalised in mid-February, probably after the February 12 general strike, are subject to further changes, which may not be ready by April 1, 2026, the date from which, according to the Union Ministry of Labour and Employment Dr Mansukh Mandaviya will be fully operational. Despite his claim, all indications are that Labour Codes can’t be fully operational from April 1, 2026.
As the things stand as of now, the Centre can start actual rolling out from April 1, and it will take time to become its fully operational. The codes will become operational from the date when the Centre would notify their operation or from the date separately announced on a later date. Though codes were notified on November 21, 2025, the final rules are not issued because they will be ready by mid-February only.
On December 31, the gig workers were on all-India strike which have forced the government to act on the exploitative ten-minute delivery model. The ministry is also open to easing eligibility norms under the Code on Social Security 2020. Sources in the Ministry of Labour and Employment say that the mandatory requirement of 90 days of work with a single aggregator, or 120 days across multiple platforms in a financial year could be reduced to facilitate more gig and platform workers to qualify for benefits of health and insurance etc. The battle of gig workers has just started who will be not be treated as employee despite they have got recognition under the new labour codes.
The progress on the Employees’ state Insurance Corporation (ESIC) and the Employees’ Provident Fund Organisation (EPFO) for implementation of several social welfare schemes are going on. Since the labour codes are to be implemented through them, their digital frameworks need to be in place without any glitches.
The Scheme to Promote Registration of Employers and Employees (SPREE) aims to expand formal employment and social security coverage, which was rolled out last year on July 1. By now only 1.03 crore new employees have been registered under ESI. As of January 11, only 1.17 lakh employers had registered. EPFO reform is going on and is an unfinished agenda. After the implementation of the new labour codes, both ESI and EPFO will need to implement it according to news definitions and rules, for which their digital infrastructures need to be readjusted.
Then there is the Shram Shakti Niti 2025, which is yet in draft level. It envisages a unified digital “Labour Stack” to link workers identity, EPFO, ESIC, and the e-shram portal. Work will be done in three phases – Phase 1 (2025-27), Phase 2 (2027-2030) and Phase 3 (Beyond 2030). To implement new labour codes and the Shram Shakti Niti 2025, government will need a unified digital framework, which is not ready.
Though India Inc is working on strategies to comply with new employee benefits norms, majority of companies are awaiting final rules. Only a handful of companies are restructuring salaries. The companies, which have restructured the salaries had to face huge financial losses. Almost all companies will face a one-time hit, and hence they are awaiting the final notification of the labour rules. Once they are notified, the majority of the companies will also take some time to incorporate them.
A week from now Union Minister for Finance Nirmala Sitharaman will table the Union Budget 2026-26, which will give further indication whether the new labour codes will be implemented in full in the original form, or in modified form, or will be deferred for a later day. Since the Union Labour Ministry has invited suggestion, it is supposed that the rules are still subject to change. (IPA Service)
Full Implementation of New Labour Code from April 1, 2026 Seems Uncertain
Stiff Resistance and Roadblocks May Cause Dilution of Rules or Deferment
Dr. Gyan Pathak - 2026-01-24 12:13 UTC
Though the Union Ministry of Labour and Employment of India is working to rollout of the new labour codes for full implementation from April1, 2026, it seems uncertain because of stiff resistance from the Joint Platform of the 10 Central Trade Unions (CTUs) and many roadblocks that have unexpectedly come into the way since their notification on November 21, 2025. CTUs have demanded their withdrawal and are preparing for nationwide strike on February 12, while draft rules are expected to be finalised by mid-February. The government has received multiple suggestions to defer the operationalisation to the next financial year. Labour codes are to be implemented through digital framework, but they are still facing glitches, that employee unions have flagged. Government seems not fully prepared as of now, while only two months are left for announced full implementation.