Experts are raising concerns about the compliance challenges posed by overlaps between India's Labour Codes and state-specific Shops and Establishments Acts. The Labour Codes, which establish a broad framework for employment regulations, differ in key areas such as working hours, leave entitlements, and overtime provisions compared to state laws. This discrepancy creates uncertainty for companies, particularly those operating across multiple states, as they must navigate varying standards. Pooja Ramchandani, a partner at Shardul Amarchand Mangaldas & Co., emphasized that the dual compliance requirement could lead to either excessive compliance costs or increased risks of non-compliance. The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) also overlaps with state laws, causing further confusion regarding worker classifications and entitlements. With the Labour Codes implemented in November 2025 but final rules still pending, businesses are left in a state of flux. Industry leaders, including Ankur Jain from PwC India, noted that while the Codes allow for a maximum of 48 working hours per week, some states enforce stricter limits, complicating work schedule planning. As companies await clarifications from the labour ministry, many are likely to adopt more employee-friendly policies to mitigate legal risks, even if it results in higher compliance costs in the short term.