Recent developments in India
We understand the challenges of staying up to date with evolving labour laws and regulations. That’s why we actively monitor changes, so you don’t have to. Below are the key developments shaping the employment landscape in India in 2026.
Ongoing Implementation of India’s Labour Codes (2026)
India continues the phased implementation of the four Labour Codes, the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety, Health and Working Conditions Code. While not all provisions are fully operational nationwide, states continue to notify rules, leading to gradual changes in compliance requirements for employers, particularly around wages, working conditions, and industrial relations.
Contract and Temporary Workers (2026)
Protections for contract and temporary workers continue to be governed by existing legislation and the evolving Labour Codes framework. Employers remain responsible for ensuring compliance with:
- Minimum wage requirements as set by states.
- Safe working conditions.
- Statutory social security contributions where applicable.
There has been no single standalone national act introduced in 2026 exclusively for temporary or agency workers, but enforcement activity has increased in several states.
Employment Termination and Retrenchment (2026)
Rules governing layoffs, retrenchment, and closures remain largely unchanged in 2026. Employers must continue to follow state-specific thresholds and procedures, including notice requirements, government approvals where applicable, and statutory severance payments.
Social Security Coverage Expansion (2026)
India continues efforts to expand social security coverage, particularly for gig workers, platform workers, and unorganized-sector employees. Registration mechanisms and digital portals are being enhanced at both central and state levels, although coverage and enforcement vary significantly by region.
Foreign Employment and Cross-Border Workforce (2026)
Regulation of foreign nationals working in India and Indian nationals working abroad continues under existing immigration, visa, and emigration frameworks. Employers must ensure proper visa sponsorship, tax compliance, and adherence to foreign exchange and reporting rules. No comprehensive new foreign employment statute was introduced in 2026.
Alignment with International Labour Standards (2026)
India continues to align domestic labour practices with international labour standards, including principles such as non-discrimination, fair wages, and occupational safety. Progress remains incremental and is primarily driven through policy guidance, judicial interpretation, and selective legislative updates rather than a single unifying act.
