Restaurant India News: Swiggy Shares Surge 5% After Company Expresses Support for New Labour Codes

The government on Friday formally notified the four new labour codes, consolidating and rationalising 29 existing labour laws in an effort to simplify regulations, formalise employment, and strengthen worker protection. The reforms aim to make India’s labour ecosystem more streamlined, safer, and aligned with global standards.

A key provision under the newly implemented framework is the introduction of formal definitions for “gig work”, “platform work” and “aggregators”. The codes require aggregators employing gig workers to contribute 1–2% of their annual turnover towards social security, with the total contribution capped at 5% of the amount payable by the aggregator.

Shares of Swiggy Ltd gained sharply on Monday, closing nearly 5% higher after the company described the labour reforms as a “transformative step” that would deliver long-term benefits for millions of workers. The stock ended 4.90% higher at ₹404.55 on the BSE, after touching an intraday high of ₹410.30 and a low of ₹378.05. On the NSE, it closed at ₹404.60, up 4.96%.

In a regulatory filing on Saturday, Swiggy said it supports the government’s vision of building a modern and inclusive social security system. The company added that it does not expect the Code on Social Security, 2020 (CoSS) to have any material impact on its business sustainability, cost structure or long-term financial performance. The notification of the four labour codes marks one of the most significant overhauls of India’s labour framework in recent years, with implications for both traditional employers and the rapidly growing gig economy.

"This reform represents a landmark restructuring of India's welfare and regulatory architecture, a transformative step toward building an inclusive, coherent, and future-ready social-security framework that extends across formal employment, the unorganised sector, and the rapidly expanding platform economy," Swiggy said.

The company further said, "We recognise the significance of this moment and the far-reaching benefits these reforms can unlock for millions of workers." The four labour codes are: 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.

Referring to the Code on Social Security, 2020 (CoSS), Swiggy said it is a welcome development that brings much-needed uniformity, clarity, and predictability to all stakeholders.

"The framework is expected to simplify and strengthen benefit access for workers on digital platforms, while also easing compliance for enterprises operating across diverse geographies," it added.

Eternal Ltd on Saturday welcomed the implementation of the four labour codes, which it said will help strengthen the social security access for gig workers, including for its Zomato and Blinkit businesses. In a regulatory filing, Eternal, the parent entity of Zomato and Blinkit, said it does not think the financial impact on account of these rules will be detrimental to the long-term health and sustainability of its business.