The Central government on Saturday expressed optimism that the implementation of labour codes will help strengthen the country's export ecosystem as it provides flexibility, simplification and predictability, which are essential to compete in volatile global markets while meeting international compliance requirements.
A commerce ministry official said that for workers, the same provisions ensure fair wages, social security, safety, equality and avenues for upskilling and dignity of labour.
In a landmark move, the government on Friday implemented the four labour codes, pending since 2020, introducing worker-friendly measures like a timely minimum wage and universal social security for all, including gig and platform workers, while allowing longer work hours, broader fixed-term employment and employer-friendly retrenchment rules.
The official said that each of these provisions under the codes contributes in a distinct yet interconnected manner to the strengthening of India's export ecosystem. "For export-oriented industries, the codes provide flexibility, simplification and predictability essential to competing in volatile global markets while meeting international compliance expectations," he said.
Introduction of a uniform definition of "wages" across all labour codes would eliminate the ambiguity created by multiple, inconsistent definitions in earlier laws, the official said, adding that for export-oriented industries operating in multiple states, it simplifies payroll administration and compliance, ensuring uniformity in wage calculations for social security contributions, bonus and gratuity.
For export industries functioning across states, national floor wage and minimum wage rationalisation offer predictability in labour cost structures and eliminate regional disparities.
"The prohibition of gender-based discrimination in recruitment and wages ensures equal remuneration for equal work. For export industries, this aligns domestic practices with international labour and human rights standards, particularly those demanded by global retail and sourcing partners," the official said.
The provision permitting employment of women during night shifts, subject to their consent and adequate safety measures, greatly benefits export industries that function on a 24-hour production cycle to meet international orders. Industries in sectors like apparel, electronics, and IT-enabled services can now legally employ women during late hours with proper transportation, security and welfare arrangements.
Further raising the threshold for prior government approval for lay-off, retrenchment or closure from 100 to 300 workers offers industries operational flexibility to adjust to changing export orders and global market conditions¸ the official said. "This provision gives exporters the confidence to expand employment during peak demand periods without the fear of excessive rigidity during downturns," the official said, adding that export-oriented industries, which are frequently audited by overseas clients and certification agencies, gain credibility through transparent and traceable digital documentation.
Also read: Rationalising labour laws, govt notifies 4 labour codes
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