Nearly 75 per cent of companies expect wider adoption of structured fixed-term employment following the implementation of India’s new labour codes, indicating a growing shift towards workforce formalisation, according to a report by Genius HRTech.
The report, based on responses from 1,459 companies across sectors collected in January 2026, suggests that organisations are increasingly moving towards formal, compliant and documented employment arrangements in response to the regulatory changes.
“The shift toward workforce formalisation is becoming increasingly evident, as an overwhelming 75 per cent of respondents anticipate greater adoption of structured fixed-term employment as a strategic response to the new labour codes,” the report said.
In November 2025, the Centre consolidated 29 Central labour laws into four major codes, the Code on Wages, Industrial Relations Code, Code on Social Security, and the Occupational Safety, Health and Working Conditions Code, in a bid to simplify compliance, modernise labour regulations and improve worker welfare.
However, the report highlighted that while many organisations recognise the impact of the reforms, their preparedness remains uneven.
Around 40 per cent of respondents said their organisations are fully ready to implement the four labour codes. Another 22 per cent reported being partially prepared, while 17 per cent remain at an early stage of readiness and 21 per cent have yet to begin implementation efforts.
The findings point to a significant readiness gap as companies approach the operational phase of the reforms.
The report also revealed that nearly 46 per cent of organisations have not yet undertaken a structured gap analysis of their HR, payroll and compliance systems, while only 18 per cent have completed the exercise.
Another 21 per cent said the process is currently under way, while 15 per cent are still planning to begin the analysis, suggesting that systemic preparedness may lag behind perceived organisational confidence.
Among the four labour codes, the Code on Wages is expected to have the most far-reaching impact on workforce structures. About 67 per cent of respondents identified it as the provision likely to drive the most significant changes.
The reform is expected to lead to wage definition realignment, payroll restructuring and compliance adjustments, which could alter existing cost frameworks for companies.
In line with this shift, 39 per cent of organisations reported that their wage structures are already fully aligned with the revised definitions under the Code on Wages.
Despite the transitional challenges, the long-term outlook remains largely positive, with 60 per cent of respondents viewing the labour codes as a major step towards improving employment formalisation and regulatory compliance in India.
“For organisations, this is a strategic transformation that demands proactive realignment of wage structures, social security frameworks and workforce models. Those who act early will emerge stronger, more compliant and more resilient, provided implementation balances governance with practical cost realities,” said RP Yadav, Chairman and Managing Director of Genius HRTech.
Source – https://newsarenaindia.com/economy/75-firms-expect-shift-to-fixed-term-jobs-report/72282