Indian Textile Industry Praises New Unified Labor Code
The Indian textile industry has welcomed the country's labor law reforms. The Southern India Mills Association (SIMA) stated that the recently announced labor codes will simplify labor regulations, protect the interests of both employers and employees, and help the country progress towards a developed India.
SIMA Chairman Durai Palanisamy praised Prime Minister Narendra Modi for this major and innovative initiative. He said that the implementation of these labor codes is another historic achievement for the government, marking a milestone in the many major changes that have taken place, following the changes in the tax system.
The Government of India has notified the Industrial Relations Code, 2020; the Social Security Code, 2020; the Occupational Safety, Health, and Working Conditions (OSHWC) Code, 2020; and the Wage Code, 2019. These rules, which will come into effect on November 21, 2025, will improve 29 existing labor laws.
Palanisamy said the new labor codes will help Indian industry comply with social accountability standards set by major regions like the European Union and the US. He said the new policy initiatives will benefit the industry from the upcoming free trade agreements with the EU and US.
The new labor codes include provisions such as flexible working hours, flexible fixed-term employment, leveling the playing field in compliance costs, simplification of laws, ease of doing business, certification across India through a single license and registration, mandatory health check-ups for workers, mandatory issuance of appointment letters, increased safety during night shifts, incentives to hire more women, and annuity-based gratuity benefits.
SIMA stated that although the new labor code may increase costs for companies due to additional welfare rules for workers, workers' interests are well protected.
The association stated that it has been at the forefront of labor-related work and has consistently urged the government to simplify outdated labor laws and introduce a unified code, which will help India remain a global leader in social accountability.
