How India's new labor laws can boost women's workforce participation
What's the story
The All India Organisation of Employers (AIOE) and law firm Shardul Amarchand Mangaldas have released a white paper highlighting the potential of India's newly notified labor codes. The document, titled "Breaking the Glass Ceiling: How the Labour Codes Boost Women's Participation in India's Workforce," emphasizes how these codes could significantly increase women's participation in the workforce. The four labor codes came into effect on November 21, 2025.
Code impact
Aim to make workplaces safer, more secure
The white paper notes India's legal framework has kept pace with social change, as seen in the increase in female labor force participation from 23.3% in 2017-18 to 41.7% in 2023-24. The authors of the study argue that these new labor codes modernize India's employment law by merging multiple legacy laws into a simpler and more coherent structure. This is especially important for women, as it aims to make workplaces safer and broaden social security while making compliance more predictable.
Sectoral impact
They could enhance women's participation across sectors
One of the main outcomes of these labor codes is their potential to enhance women's participation across sectors by making work more sustainable and secure. The white paper highlights that under the Social Security Code, 2020, maternity protections remain strong with 26 weeks of paid leave for eligible employees and 12 weeks for adoptive/commissioning mothers. Further provisions like nursing breaks, medical support and simplified proof requirements for pregnancy/delivery are also included.
Coverage expansion
Labor codes expand insurance coverage, include gig workers
The white paper also highlights the extension of Employees's State Insurance coverage to all industries and districts, including plantations that employ many women workers. The inclusion of gig and platform workers in the social security framework is seen as a progressive step, especially for women who depend on flexible work arrangements to manage their caregiving responsibilities.
Night shift provision
Occupational Safety Code allows women to work night shifts
The Occupational Safety, Health and Working Conditions Code allows women to work in all establishments, including traditionally restricted sectors and night shifts. This is subject to consent and adequate safety arrangements. The provision is seen as a game changer for sectors like IT, healthcare, aviation, and logistics as it removes an "invisible ceiling" on women's earnings and advancement.