India’s new labor codes are set to change the way companies deal with wages, workplace safety, employee benefits and compliance, with the Center now pushing for technology adoption across sectors. The government said the reforms are aimed at simplifying labor law, reducing the compliance burden on businesses and improving social security and working conditions for employees.
Addressing the ASSOCHAM (Associated Chamber of Commerce and Industry of India) national seminar held in New Delhi on Wednesday, Labor Minister Vandana Gurnani said the Center is working with states and industry bodies to ensure smooth implementation of the four labor codes that replace 29 existing labor laws with a streamlined digital compliance framework.
“The success of labor laws will depend on strong collaboration between government, industry and workers,” she said.
The remarks come days after the Center notified the rules under the four labor codes in the official gazette on May 9, after a wait of more than five years, completing the process necessary to fully implement the new labor framework, news agency PTI reported.
What do the new labor codes have to offer workers?
Emphasizing the government’s “digital-first” approach, Gurnani said future inspections under the new labor codes will be risk-based, technology-enabled and focused on facilitation rather than intrusive enforcement.
“The goal is to minimize unnecessary human interface and encourage voluntary compliance,” she said.
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She also said the reforms emphasize workplace safety, timely payment of wages and stricter compliance with social security, while promoting welfare facilities and transparent wage structures.
According to the government, the new work framework is aimed at improving workforce confidence, expanding formal employment and simplifying compliance requirements, particularly for SMEs, by reducing the complexity of procedures and digital submissions.
Changes in EPFO system
Speaking at the seminar, Ramesh Krishnamurthi, Central Provident Fund Commissioner (CPFC) and CEO, Employees’ Provident Fund Organisation, said that EPFO is expanding the provision of digital services in line with the new Labor Code ecosystem.
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He said EPFO is implementing API-based return filing systems, automated account transfers and simplified withdrawal mechanisms to improve compliance for employers and workers. “The focus is on ease of access, ease of living and building a seamless digital compliance ecosystem,” he said.
He added that Social Security inspections will increasingly rely on data analytics and web-based systems to identify high-risk cases of non-compliance.
The seminar was attended by senior industry representatives from sectors including textiles, manufacturing, infrastructure and technology, along with labor law experts and HR executives, reflecting the industry’s growing focus on implementation readiness under India’s new labor regime.
