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Analysis: Why Indias labour reforms debate needs a reset

Labour Reform in India: A New Perspective for the Future of Work

Labour Reform in India: A New Perspective for the Future of Work

India's conversation on labour reform has been long overdue for a fresh perspective. For the last decade, discussions have been mired in the narrow debate of flexibility versus protection, with employers calling for simpler rules and workers demanding security and rights. However, the world of work in India is undergoing more fundamental changes, necessitating a shift in our approach to labour reform.

From Job Counts to Quality of Work

Instead of focusing on job creation numbers, we need to prioritize the quality of work. ILO's work on employment conditions in Indian states offers a more useful lens: consider earnings relative to minimum wages, stability of employment, social security coverage, working hours, and the presence of grievance redress and voice. Imagine if Union and State governments published regular quality of work dashboards, not just unemployment rates.

From Narrow Employee Benefits to Universal, Portable Social Protection

The existing legal architecture assumes a clear, stable employer-employee relationship in a factory or office. However, today's worker may be self-employed, casually employed, working through a platform, or in a complex supply chain with multiple layers of contracting. Social protection must become a universal floor linked to citizenship or residency, with contributions from workers, firms, and the state, and with portability across jobs, sectors, and states.

From a Binary View of Formal vs Informal to a Continuum of Work Arrangements

Recognizing intermediate categories such as dependent contractors or platform workers is crucial. This is not a technical exercise; it is a way of bringing these relationships into the realm of minimum wages, occupational safety, and collective bargaining.

From Episodic Skilling Schemes to a Right to Lifelong Learning

India's approach to skills remains project-based. If we are serious about the future of work, labour reform must include institutionalized rights and obligations around learning, individual learning accounts, training leave, sectoral skill funds, and clear responsibilities for employers and the state to co-finance upgrading of capabilities.

Relevance to North East India and Broader Indian Context

The changes in labour reform are relevant to North East India as the region experiences similar challenges in employment and informality. The four new labour codes introduced by the Government of India, effective from November 21, 2025, aim to simplify and streamline 29 codes into four laws. However, the success of these reforms depends on their implementation, which should take into account the unique challenges faced by the region, particularly in terms of gender, care, and voice.

Reflective and Forward-Looking Closing

The future of work in India will be shaped less by technology itself and more by the institutions and rules we build around it. Labour reforms that focus only on making it easier to hire and fire are behind the curve. The real question for India is this: can we design a labour regime that shares risks more fairly, builds workers' capabilities continuously, and gives them a real voice in how AI, climate policies, and services-led growth reshape their lives? If we can, labour reform will cease to be a technocratic battle over codes and thresholds and become what it ought to be: a democratic conversation about the kind of society and future of work we want to build.