Events

Past Events

Labour Codes: Impact on Electronics Manufacturing

AMCHAM’s Electronics Manufacturing Committee, under the leadership of Mr. Naveen Tandon, Co-Chairman -Electronics Manufacturing Committee, AMCHAM and Head – Policy & Strategy, Apple India, convened a specialized webinar on December 2nd to examine the impact of India’s newly implemented labour codes on the electronics manufacturing sector. The session, led by Mr. Puneet Gupta, Partner, EY People Advisory Services, brought together industry leaders to analyze how the four labour codes, notified on November 21st, 2025, will reshape workforce management in a sector where electronics exports have surged 47% year-on-year to reach ₹1,08,450 crore in Q1 FY26. Mr. Gupta provided an in-depth analysis of eight critical work streams, highlighting the redefined “wages” concept that caps exclusions at 50% of total remuneration, retrospective gratuity calculations, and gratuity payment after one year for fixed-term employees. Special emphasis was placed on provisions affecting women employees, including night shift regulations, mandatory transport with CCTV monitoring, and simplified creche allowance options, critical for an industry with a large-scale women workforce. The session also covered flexible work arrangements allowing up to 48 hours per week, prohibition on contract labour for core activities, mandatory leave encashment, and new compliance requirements including grievance committees, safety committees, and enhanced documentation standards. Participants raised questions on managing multi-state operations during the 3-6 month transition period, state-specific exemptions, and implementation challenges, all addressed by Mr. Gupta with actionable guidance. It was emphasized that while U.S. companies maintain high standards, specific areas such as leave encashment policies, worker classification, and compliance frameworks require immediate attention to sustain India’s momentum as the world’s second-largest mobile phone manufacturer.