A Step Closer to Implementation?
The long-pending Labour Codes, a significant reform initiative, are once again gaining traction. The Ministry of Labour is actively preparing the groundwork, enabling the new government, post-June elections, to seamlessly implement the codes if they choose to do so.
"Notifying the codes has been a long-standing priority in our reform agenda," stated a senior official. "The Ministry is diligently reviewing the implementation process, formulating regulations, and issuing necessary notifications." Notably, preparatory work is also underway for specific provisions, including the social security fund for informal workers.
Encouragingly, most states have published draft rules under the codes for public consultation. These rules can be swiftly notified once a decision on implementation is reached. "We are ensuring everything is in place," the official affirmed. "The incoming government, after its formation 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 already passed these Codes, their notification requires consensus-building with states, as labour falls under the concurrent list in the Constitution. This means both the Centre and individual states can enact legislation on this subject.
Previously, both industry and trade unions raised concerns about the Labour Codes, leading to reluctance from many states to notify them. However, the Centre has since undertaken extensive consultations to build consensus on the various provisions. This renewed effort paves the way for a potential implementation of the long-awaited Labour Codes, potentially ushering in a new era of streamlined and modernized labour laws in India.