HOW NEW LABOUR LAWS COULD IMPACT THE REAL ESATE MARKET
The current government at the centre announced new labour laws which are expected to bring significant differences in India’s labour market.
• The Code of Wages
• The Industrial Relations Code
• The Code on Social Security
• The Occupational Safety, Health and Working Conditions
The four above labour codes have simplified, codified and modified 29 central labour laws, some of which date back to the pre-independence era. The sector will move from an informal, contractor-driven ecosystem to a more stable institutional workforce. Compliance under the new codes means knowing exactly who works on your site, how they’re paid and how they are protected – not just at the developer level, but across the entire contractor chain.
Over the next 6-18 months, timelines may stretch as the ecosystem adjusts, but in the long run, safer and better-governed labour will reduce churn and improve execution. Costs will rise in the short term – but the cost of non-compliance will be far higher. In a 10-year view, good labour practices will strengthen India’s credibility as a global-grade real estate market.
Benefits like one-year gratuity and enhanced overtime compensation will improve worker morale and retention, which is crucial for project continuity. However, these changes will require companies to recalibrate their cost structures and staffing models. The transition may feel challenging but ultimately necessary. The emphasis on compliance, structured working hours and transparent wage practices will push the sector towards higher efficiency and a more equitable labour ecosystem in the long run.
The new labour codes are expected to uplift the real estate sector, especially the low-cost housing market. When workers feel financially protected through benefits like quicker gratuity eligibility and structured wage reforms, they gain the confidence to make long-term commitments such as buying a home. This increased sense of stability among employees will translate into higher demand in affordable housing.
Salil Kumar, Director – Marketing & Business Management, CRC Group said, “We already pay our labour force wages that are at par with the best in the industry, so we foresee the overall impact to be marginal.” He believes that this was a much-needed step for a sector like real estate that relies on a large and diverse workforce.
The new labour codes mark a structural upgrade in how India manages its constructional workforce. The emphasis on formal wages, social security and safety will require developers to strengthen documentation, streamline payroll practices and invest more deeply in on-site welfare.
In the short term, companies may witness minor adjustments in construction timelines as they adapt to new reporting and contractual norms. But these shifts are offset by fewer disputes, better retention and smarter operations.
DAAMRI DEALS PVT LTD ALPHA 1 COMMERCIAL BELT GREATER NOIDA
• The Code of Wages
• The Industrial Relations Code
• The Code on Social Security
• The Occupational Safety, Health and Working Conditions
The four above labour codes have simplified, codified and modified 29 central labour laws, some of which date back to the pre-independence era. The sector will move from an informal, contractor-driven ecosystem to a more stable institutional workforce. Compliance under the new codes means knowing exactly who works on your site, how they’re paid and how they are protected – not just at the developer level, but across the entire contractor chain.
Over the next 6-18 months, timelines may stretch as the ecosystem adjusts, but in the long run, safer and better-governed labour will reduce churn and improve execution. Costs will rise in the short term – but the cost of non-compliance will be far higher. In a 10-year view, good labour practices will strengthen India’s credibility as a global-grade real estate market.
Benefits like one-year gratuity and enhanced overtime compensation will improve worker morale and retention, which is crucial for project continuity. However, these changes will require companies to recalibrate their cost structures and staffing models. The transition may feel challenging but ultimately necessary. The emphasis on compliance, structured working hours and transparent wage practices will push the sector towards higher efficiency and a more equitable labour ecosystem in the long run.
The new labour codes are expected to uplift the real estate sector, especially the low-cost housing market. When workers feel financially protected through benefits like quicker gratuity eligibility and structured wage reforms, they gain the confidence to make long-term commitments such as buying a home. This increased sense of stability among employees will translate into higher demand in affordable housing.
Salil Kumar, Director – Marketing & Business Management, CRC Group said, “We already pay our labour force wages that are at par with the best in the industry, so we foresee the overall impact to be marginal.” He believes that this was a much-needed step for a sector like real estate that relies on a large and diverse workforce.
The new labour codes mark a structural upgrade in how India manages its constructional workforce. The emphasis on formal wages, social security and safety will require developers to strengthen documentation, streamline payroll practices and invest more deeply in on-site welfare.
In the short term, companies may witness minor adjustments in construction timelines as they adapt to new reporting and contractual norms. But these shifts are offset by fewer disputes, better retention and smarter operations.
DAAMRI DEALS PVT LTD ALPHA 1 COMMERCIAL BELT GREATER NOIDA
