AMCHAM organized a roundtable on ‘India’s Labour Codes – Bridging the Gap Between Policy & Practice’ on September 3rd in New Delhi bringing together government, industry, HR, and legal stakeholders to discuss the practical implications of the labour codes and the evolving implementation landscape.

In her welcome remarks, Ms. Ranjana Khanna, Director General CEO, AMCHAM, highlighted the significance of the labour codes for India’s business and investment environment. Ms. Saraswathi Kasturirangan, Co-Chairperson – HR Committee, AMCHAM and Partner & Chief Happiness Officer, Deloitte, set the scene by emphasizing that the consolidation of twenty-nine labour laws into four codes had sought to simplify compliance, strengthen worker protections and support ease of doing business. She noted that effective implementation and greater regulatory predictability would be critical for businesses, particularly multinational and U.S. companies operating in India.

In his special address, Dr. Mahendra Kumar, Joint Secretary, Ministry of Labour & Employment, Government of India, outlined the government’s vision behind the reforms, highlighting labour-rights protection, employment generation, social security, simplification and modernization. He explained that the new framework had introduced measures including universal minimum wages, fixed-term employment, wider social-security coverage, digitized compliance, and significant decriminalization. He also highlighted the transition towards an inspector-cum-facilitator model, supported by improvement notices, risk-based inspections, self-certification, and capacity building of enforcement officials. The ministry’s efforts towards greater center–state alignment, and planned outreach across 300+ industrial districts were also noted.

The presentation by Mr. Suryansh Gupta, Principal Associate, Shardul Amarchand Mangaldas & Co, focused on employers’ practical experience with implementation. He noted that the revised definition of “wages” had emerged as the principal industry concern, with implications for PF, ESI, gratuity, overtime, compensation structures, and overall employment costs. They also highlighted challenges around workforce categorization, fixed-term employment, contract labour, leave and encashment, employee benefits, registrations, and the interaction between central and state laws. Employers were advised to treat compliance as an ongoing transition and to continuously review payroll, HR policies, workforce structures, and state-specific requirements.

The Q&A session, moderated by Ms. Saraswathi Kasturirangan, featured Dr. R.G. Meena, Labour Policy & Industrial Relations Expert and Former Deputy Chief Labour Commissioner (Central), Government of India and Advisor, Ministry of Labour & Employment, Government of India — Labour Codes & Central Rules, Ms. Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co, and Mr. Govind Ram, Deputy Secretary, Ministry of Labour & Employment. The discussion focused on the interpretation of the wage definition and 50% rule, treatment of allowances and benefits, WFH and internet allowances, variable pay, ESI coverage, contract labour, Grievance Redressal Committees, expatriate social-security obligations, and payroll timelines. Industry participants particularly sought clarity, consistency and stability of interpretation, as well as greater convergence between central and state requirements.

The experts acknowledged that implementation remained an evolving process and encouraged stakeholders to submit specific issues and suggested interpretations to the Ministry for consideration through FAQs and further guidance. The discussion also reinforced the importance of continued government–industry consultation, particularly as state rules continued to develop.

The roundtable concluded with a shared recognition that the labour codes represented a significant move towards simplification, digitization, worker protection, and ease of doing business, while their ultimate success would depend on effective implementation on the ground. Awareness, capacity building, and continuous dialogue were identified as essential to translating the reforms into a consistent and facilitative framework for both employers and workers.