The Southern India Mills’ Association (SIMA) and the Tamil Nadu Small and Tiny Industries Association (TANSTIA) have welcomed the implementation of the four labour codes.
Durai Palanisamy, chairman, SIMA, said the implementation of these labour codes will facilitate complying with social accountability norms prescribed by leading countries such as the European Union and the US. The EU has decided that any exporting country must comply with the Corporate Sustainability Due Diligence Directive (CSDDD) requirements to access the European market. The new policy initiatives will facilitate the industry to take advantage of FTA to be concluded with EU and US in short run.
S. Surulivel, vice-president of TANSTIA, said the consolidation of 29 existing laws into four comprehensive codes is a progressive and forward-looking reform. This transformation enhances both industry efficiency and worker welfare.
Some of the benefits of the codes are provision of mandatory appointment orders for all employees, ESI coverage extended to establishments with fewer than 10 workers, eligibility for bonus even with a minimum of 30 working days in a year and simplified licensing requirements, improving ease of doing business.
The codes also mandate annual health check-ups for workers in factories employing more than 40 persons, with potential expansion in future, timely wage payments to all employees, gratuity benefits available to workers who have completed just one year of service and uniform minimum wages across India, replacing varied State-specific structures.
“These reforms not only promote social security and dignity for workers but also support sustainable industrial growth, transparency, and formalisation of employment,” he said.
Published – November 22, 2025 09:13 pm IST
