On Wednesday (14th January), Infosys Systems, India’s second largest IT firm, took a hit of Rs 1,289 crore due to the new Labour Code. The revelation was made in the company’s announcement of the December quarter earnings.
Infosys stated that it estimated and disclosed the incremental impact of the new labour codes on the basis of legal opinion and the available information. Infosys increased its FY26 revenue growth guidance despite its consolidated net profit for the fiscal third quarter slumping around 2 per cent year-on-year to Rs 6,654 crore due to a labour code-related charge. The firm missed Street expectations
Addressing the post-earnings press conference, Chief Financial Officer Jayesh Sanghrajka said, “Whatever is to be approved in this quarter has been approved in the books, and that is being approved. There will be an ongoing impact of roughly around 15 basis points on an annual basis point.”
On 12th January, Tata Consultancy Services (TCS) also revealed Rs 2,128 crore and HCLTech Rs 956 crore exceptional charge on account of new labour codes.
The new Labour Codes
On 21st November 2025, the Modi government implemented the four Labour Codes in India. These include the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020).
These Labour Codes are aimed at rationalising a whopping 29 existing labour laws, modernising labour regulations, enhancing the welfare of workers and laying the foundation for a future-ready workforce.
For the first time, the labour reforms have formally recognised gig and platform workers, including delivery executives on apps like Swiggy, Zomato, etc, bringing them under a formal welfare framework.
