Swiggy shares settle 5% higher on Monday: Firm terms new labour codes as a 'transformative step'

The stock climbed 4.90% to settle at ₹404.55 apiece on the BSE. During the day, shares of the firm hit a high of ₹410.30 and a low of ₹378.05.

On the NSE, the stock jumped 4.96% to ₹404.60.

While supporting the government's vision of a modern and inclusive social security net, Swiggy, in a regulatory filing on Saturday, said it does not anticipate any material impact from the CoSS (the Code on Social Security, 2020) on its business sustainability, cost structure, or long-term financial performance.

The government on Friday notified the four labour codes, which have rationalised 29 existing labour laws. These will formalise employment, strengthen worker protection, and make the labour ecosystem simpler, safer, and globally aligned.

Under the new codes, 'gig work', 'platform work', and 'aggregators' have been defined for the first time. The codes stipulate that aggregators employing gig workers must contribute 1-2 per cent of annual turnover to social security, with the total contribution not exceeding 5 per cent of the amount payable by the aggregator.

"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."

What are the four labour codes?

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 too welcomes the move

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.

Shares of Eternal Ltd ended marginally lower by 0.36% at ₹300.95 apiece on the BSE.

On the NSE, the stock dipped 0.31% to ₹301.