New Labour Codes Drive Fixed-Term Employment Surge: 75% Companies Anticipate Rise

• Nearly 75% of companies expect a rise in structured fixed-term employment due to new labour codes, signaling greater workforce formalisation.
• The new labour codes, consolidating 29 Central laws, were implemented in November 2025 to simplify compliance and enhance worker welfare.
• A significant readiness gap exists: only 40% of organizations are fully prepared, while 46% haven't initiated a structured gap analysis.
• The Code on Wages is expected to have the greatest impact (67% respondents), driving changes in wage definition and payroll.
• Despite transitional challenges, 60% view the new Labour Codes as a powerful enabler for employment formalisation and compliance in India.