New Indian Labour Codes & Their Impact On Hiring- Career Choice Solution

By Career Choice Solution

Director: Mr. Abhishek Padwal

9768991515

abhishek.p@careerchoicesolution.com

www.caeerchoicesolution.com

Introduction

India’s labour landscape is undergoing a transformational shift with the introduction of the four new Labour Codes, aimed at simplifying compliance, improving worker protection, and aligning India’s workforce policies with global standards.

For recruitment agencies, HR teams, and employers, these reforms bring new responsibilities — and new opportunities.

At Career Choice Solution, we guide businesses through these regulatory transitions to ensure smooth hiring, compliance, and workforce management.

Overview of the Four New Labour Codes

The Government of India consolidated 29 labour laws into 4 major labour codes:

Code on Wages, 2019

• Industrial Relations Code, 2020
• Occupational Safety, Health & Working Conditions (OSH) Code, 2020
• Social Security Code, 2020
• These codes aim to simplify processes, improve employee welfare, and reduce compliance complexity.

1. Code on Wages, 2019

Key Highlights

• Uniform definition of wages across all laws
• Mandatory minimum wages across industries
• Timely payment of wages
• Stricter penalties for non-compliance

Impact on Hiring

• Salary structures may need to be revised
• Higher take-home impact for employees
• Clarity in compensation improves transparency for candidates

2. Industrial Relations Code, 2020

Key Highlights

• New rules for strikes, lockouts, and industrial disputes
• Fixed-term employment formally recognized
• Threshold for standing orders increased

Impact on Hiring

• Employers can now hire fixed-term staff easily
• Smoother contract staffing processes
• Reduced compliance burden for small companies

3. Occupational Safety, Health & Working Conditions Code, 2020

Key Highlights

• Standardized norms for working conditions
• Mandatory health, safety, and welfare measures
• Single licence for factories and contractors

Impact on Hiring

• Contractors and recruitment agencies benefit from one nation–one licence
• Improved safety norms increase employee retention
• Easier onboarding for workers in manufacturing, logistics, construction, etc.

4. Social Security Code, 2020

Key Highlights

• PF/ESIC coverage extended to gig and platform workers
• Formalization of unorganized sector
• Wider social security benefits for employees

Impact on Hiring

• Higher PF/ESIC obligations for employers
• Better employee welfare attracts quality talent
• Contract workers also receive social protection

How Do the New Labour Codes Affect Recruitment Agencies?

Recruitment agencies like Career Choice Solution must adapt to these changes to stay compliant and competitive.

✔ Revised Salary Structures

With wages uniformly defined, agencies must ensure correct PF/ESIC calculations.

✔ Simplified Licensing

The consolidated licensing rules make it easier to supply contract labour across multiple states.

✔ Increased Compliance Responsibility

Agencies must maintain proper documentation, contracts, and statutory filings.

✔ Higher Demand for Contract Staffing

Fixed-term employment and flexible workforce norms will increase staffing opportunities.

✔ Enhanced Focus on Employee Safety

Workers placed by agencies must follow OSH standards, especially in industrial roles.

Benefits for Employers

🔹 Transparent wage systems

Clear definitions reduce conflicts and improve candidate trust.

🔹 Improved workforce flexibility

The new codes support project-based hiring and fixed-term roles.

🔹 Easier compliance management

Fewer forms, fewer filings, and fewer inspections.

🔹 Better employee retention

Social security and safety provisions create a stable workforce.

How Career Choice Solution Supports You

As a trusted HR & Recruitment Partner, we help companies and job seekers navigate these labour reforms with ease:

• Compliance-ready recruitment
• Guidance on wage structures & statutory norms
• Skilled manpower for contract and permanent roles
• Payroll & documentation support
• Transparent hiring processes

We ensure your workforce is aligned with the latest labour regulations — reducing risks and enabling smooth operations.

Conclusion

The new Indian Labour Codes mark a progressive step toward a modern, formal, and employee-friendly workforce ecosystem. While they bring changes to hiring processes, they also open doors for structured, compliant, and efficient employment practices.

Career Choice Solution, under the leadership of Mr. Abhishek Padwal, is committed to helping organizations embrace these reforms with confidence and clarity.