03 Jan 2026


This is a link-enhanced version of an article that first appeared in The Economic Times
Article Overview:
The 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, easing compliance for MSMEs and mid-sized firms.
Our Partner, Atul Gupta, Labour & Employment shared his perspective. Here’s what he had to say:
“The codes in fact allow state governments to prescribe a larger limit. State governments who increase this threshold from 300 to a larger number may potentially attract investment for establishment of bigger plants with a larger workforce.”
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