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Labour Codes may spur hiring as firms get more flexibility to restructure

Indias new Labour Codes are expected to boost hiring by giving firms greater flexibility to restructure operations. The Industrial Relations Code raises the threshold for government approval for layoffs and closures to 300 workers from 100, easing compliance for MSMEs and mid-sized firms. Experts say labour-intensive sectors will benefit most, though some warn of higher labour turnover and income volatility.

3 Jan 2026 12:02 am