VVGNLI Study Shows Labour Codes Strengthening Worker Protection, Modernising Labour Relations, and Simplifying Compliance
New Delhi, 9 February 2026:
A new perception-based study by the V.V. Giri National Labour Institute (VVGNLI) has indicated strong and growing acceptance of India’s Labour Codes among workers and employers, reflecting rising confidence in the reforms’ ability to improve labour protection, modernise workplace relations and simplify compliance mechanisms.
The report, titled “The Implementation of Labour Codes: A Perception-based Analysis,” highlights that Labour Codes are being viewed as a credible institutional reform grounded in both logical design and stakeholder acceptance. The assessment underscores that the Codes strike a balance between safeguarding workers’ rights and enhancing economic efficiency.
According to the survey, both workers and employers believe the Labour Codes contribute to improved ease of living, ease of doing business, better social security access, and a more modern and transparent labour ecosystem. The study focuses on the early phase of implementation and notes that the full impact of the structural reforms will unfold progressively over time.
Workers Display Strong Confidence in Improved Protections
Perceptions gathered through personal interviews and focused group discussions show a largely positive outlook among workers regarding the transformative potential of the Labour Codes. Around 60% expect improved working conditions, 63% anticipate better regulation of working hours and leave, while 66% believe safety and monitoring provisions will enhance protection for women workers. Nearly 64% foresee stronger income security through wage transparency, and 68% support digital platforms like e-Shram for easier access to social security. About 63% believe portability of benefits will improve conditions for contract, migrant and gig workers.
Employers Welcome Simplified Compliance and Flexibility
Inputs from chambers of commerce, employer federations and industry bodies reveal strong endorsement from employers for greater regulatory clarity and operational flexibility. Nearly 76% identify workforce flexibility as essential for business sustainability, while 64% find fixed-term employment suitable for their models. More than 70% support uniform implementation across states and adoption of digital tools. Around 73% foresee long-term compliance simplification, and 62% believe social security coverage for workers will expand under the new framework.
Government Reiterates Commitment to Modern Labour Governance
The Ministry of Labour & Employment has welcomed the study as an endorsement of the consultative and progressive design of the Labour Codes, enacted between 2019 and 2020 and brought into nationwide notification on 21 November 2025. Union Labour Minister Dr. Mansukh Mandaviya said the findings reaffirm the government’s commitment to promoting social security for all, decent work opportunities, greater formalisation and inclusive growth in India’s evolving labour market.
Going forward, the government is considering detailed state-level impact studies in phases as the Codes roll out across all States and Union Territories. Such assessments are expected to support evidence-based policy refinement, peer learning among states and smoother implementation of the reforms, ensuring that the full transformative potential of the Labour Codes is realised in an inclusive and sustainable manner.
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