Mar 18: Genius HRTech Limited (formerly known as Genius Consultants Limited), a leading Workforce Staffing Services and HR Solutions provider, has released findings from its latest survey assessing India Inc.’s preparedness for the implementation of the four new Labour Codes and their anticipated impact on workforce structures.
The survey, conducted among 1,459 professionals across industries, indicates growing awareness of the reforms; however, structured readiness remains uneven across organizations.
Readiness Levels Vary Across Organizations
According to the findings, 40% of respondents stated that their organizations are fully prepared to implement the Labour Codes. Meanwhile, 22% reported partial readiness, 17% are in early preparation stages, and 21% have yet to initiate implementation—highlighting a notable readiness gap as execution nears.
Compliance Preparedness Still Lagging
A deeper analysis reveals that 46% of organizations have not begun a structured gap analysis across HR, payroll, and compliance systems. Only 18% have completed this process, while 21% are currently undertaking it and 15% have planned it—indicating that systemic preparedness may not align with perceived readiness.
Code on Wages to Drive Maximum Impact
The survey identifies the Code on Wages as the most impactful reform, with 67% of respondents anticipating significant changes in workforce structures. This is followed by the Occupational Safety, Health and Working Conditions Code (19%), Social Security Code (11%), and Industrial Relations Code (3%). Wage restructuring and compliance recalibration are expected to reshape cost frameworks across organizations.
Currently, 39% of companies report full alignment with revised wage definitions, while 27% are in the process. However, 28% have yet to assess the implications, suggesting potential last-minute adjustments.
Shift Toward Workforce Formalization
A significant 75% of respondents expect increased adoption of structured fixed-term employment as a strategic response to the new Labour Codes. Only 9% foresee no major staffing changes, underscoring a decisive shift toward formal, compliant employment practices.
Social Security and Inclusion Challenges
While 32% of organizations are fully prepared to extend social security benefits to fixed-term, gig, and platform workers, 36% admit they are not ready—highlighting challenges in formalizing informal workforce segments.
On inclusion, 51% of organizations report readiness to implement provisions impacting women employees, including safety and work conditions, though 35% are still evolving their frameworks.
Governance and Compliance Mechanisms Strengthening
Encouragingly, 63% of respondents report strong compliance governance systems to manage contractor and vendor obligations, while 21% acknowledge moderate preparedness with existing gaps.
Key Challenges Identified
Organizations cited cost and financial implications as the biggest challenge (55%), followed by operational and system readiness (27%). Additional concerns include interpretational ambiguities across states and workforce communication challenges.
Positive Long-Term Outlook
Despite transitional challenges, sentiment remains optimistic. Around 60% of respondents view the Labour Codes as a key enabler of employment formalization and compliance, while 20% expect a balanced, phased impact over time.
Leadership Perspective
Commenting on the findings, R P Yadav, Chairman and Managing Director, said:
“The new Labour Codes are not just regulatory reforms; they mark a defining shift in India’s employment landscape. For organizations, this represents a strategic transformation requiring proactive realignment of wage structures, social security frameworks, and workforce models. Those who act early will emerge stronger, more compliant, and more resilient—provided implementation balances governance with practical cost realities.”
