Electronics industry sees labour codes as big push for women’s workforce participation

“Allowing women to work in all roles—including night shifts and specialised operations—with mandatory safety measures will help expand the talent pipeline in semiconductor assembly, verification labs, and 24×7 manufacturing operations. Recognition of gig and platform workers and portability of benefits is a forward-looking addition suited to India’s digital and innovation-driven economy,” the industry body said.

“Provisions for fixed-term employment, faster dispute resolution, single licensing, and simplified compliance directly support the scaling of high-tech manufacturing clusters. At the same time, parity of benefits for FTEs and expanded social security protections ensure a balanced, worker-centric ecosystem,” it added.

Women are a crucial demographic for electronics manufacturers. A 2024 report by Quess Corp shows women accounted for 78 per cent of the industry’s workforce. They are usually hired on assembly lines for smartphone production, as operators, quality assurance professionals, and in testing roles.

The India Cellular and Electronics Association (ICEA) said that the codes will also boost business productivity while ensuring better working conditions for workers.

“The Codes cap maximum working hours at 8 hours per day and 48 hours per week, with overtime payable at twice the normal rate for hours beyond regular working time. This will ensure better work-life balance for employees, increase household cash flow of hard- working team members and simultaneously ensure greater business productivity,” ICEA said.

Pankaj Mohindroo, Chairman, ICEA, said, “For the IT and electronics sectors, these reforms bring about stronger social security, operational clarity, and a more stable workforce environment—factors that will enhance productivity and enable long-term competitiveness. ICEA believes these changes will facilitate sustainable job creation and support India’s aspiration of becoming a self-reliant manufacturing powerhouse”.

However, IESA flagged some potential near-term challenges, which includes companies seeing higher wage and compliance costs as benefits expand, adjustment period for MSMEs to adopt new norms, and a need for stronger HR processes and documentation practices.

“The Labour Codes will significantly strengthen blue-collar jobs in electronics manufacturing by ensuring better wages, safer workplaces and expanded social security. A more formal and future-ready workforce will reduce attrition and boost productivity across India’s factories. These reforms mark an important step toward building globally competitive ESDM and semiconductor ecosystems,” IESA said.