Vol. 7, Issue 2, Part C (2025)

This research paper investigates the compliance challenges experienced by employers in implementing the New Labour Code 2025 in India. The study, conducted by Ankita, a freelance researcher based in India, employs a quantitative survey approach to gather comprehensive data from 200 employers across diverse sectors and firm sizes. Stratified random sampling was used to ensure representation from manufacturing, IT/services, retail, and construction industries. The findings reveal that only 20% of employers were fully aware of the Labour Code provisions, while 50% were partially aware, 25% minimally aware, and 5% not aware at all. Key compliance issues identified include increased administrative burden, legal interpretation difficulties, and financial constraints, lack of training or guidance, and inadequate digital infrastructure. Sector-wise, manufacturing and construction firms reported higher compliance difficulties, with more employers indicating significant challenges compared to retail and IT/services. Micro and small enterprises were more financially burdened, with more respondents reporting cost-related issues compared to large enterprises. Employers strongly supported remedial measures such as government-led training programs, simplified compliance tools, and sector-specific implementation guidelines. Data was analyzed using Microsoft Excel to identify quantitative patterns. The results suggest a substantial implementation gap that must be addressed through enhanced legal clarity, structured support mechanisms, and sector-specific policy interventions. This research contributes to understanding ground-level compliance realities and offers actionable recommendations for improving the effectiveness of the Labour Code 2025.