A Step Towards Modernization
The long-awaited Labour Codes, a significant reform in India's labour landscape, are once again in the spotlight. The Ministry of Labour and Employment is actively preparing the groundwork, enabling the new government to seamlessly implement the codes if they choose to do so.
"The notification of the codes is a crucial step in our reform agenda," stated a senior official. "The ministry is diligently reviewing the implementation process, formulating regulations, and issuing necessary notifications." Additionally, preparatory work is underway for various provisions, including the social security fund for informal workers.
Encouragingly, most states have drafted rules under the codes and submitted them for public consultation. These rules can be readily notified once a decision on implementation is made. "We are ensuring that everything is in place," the official affirmed. "The new government, formed in June, will have the option to decide on the way forward."
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.
While Parliament has passed these Codes, their notification requires consensus-building with states, as labour falls under the concurrent list of the Constitution. This means both the Centre and states can enact legislation on this subject.
Previously, both industry and trade unions raised concerns about the Labour Codes, leading several states to hesitate in notifying them. Subsequently, the Centre engaged in extensive consultations to build consensus on the various provisions.
With the groundwork laid and states actively participating, the new government will have a clear path to implement the Labour Codes and usher in a modernized labour landscape in India.