Centre Government slow on New Labour Codes | Making Consensus Now
The four new labour codes, Wage Code-2019, Social Security Code-2020, IR Code-2020, and OSH Code-2020, are pending implementation since being notified in September 2020 for lack of governance collaboration.
HIGHLIGHTS:
- Labour Codes implementation still a concern to industry.
- Governance collaboration is missing on the laws.
- The reform agenda is a propaganda of Government.
- The Codes includes a mix of reformist and social security steps.
- The coming Budget session will decide the fate of the laws.
In New labour Codes, Centre Government taking steps to build consensus to implement soon
The new labour codes are still creating doubts among Industries and working class as long delayed for implementation. Since, these Codes has been suggested many changes in labour regulations on the name of historical labour reforms.
India has adopted a federal nation system in 1952 and labour is a subject on the concurernt list of the Constitution. Accordingly, both the Centre and the State government can frame laws and rules. Since, India has 37 states and union teriterries have to frame own rules for new labour codes. At last count, 31 states and union teriterries has pre-published the draft rules under the Code on Wages.
So, as part of its reform agenda, in 2019 and 2020, the centre government a href=”https://peoplemanager.co.in/centre-government-slow-new-labour-codes-making-consensus-now/”>codified 29 existing labour laws into four codes- the Code on Wage, the Code on Social Security, the Industrial Relations Code and the Occupational Safety, Health and Working Conditions Code. These four codes are known as the “new labour codes.”
To be sure, these four codes include a mix of reformist and social security steps for boosting labour productivity, government considered. But, trade unions, labour experts and industries raised concerns about these reforms as are against workers’ rights. That’s why, these four code are still hanging fire, as the final rules thereunder are yet to be published.
If these codes are not implemented from new fiscal year then its implementation would be delayed to 2024 post Lok Sabha elections. This fear pushed the centre goverment to take steps to make concensus on the new labour codes implementation with trade unions and state governements.
The rollout of the the much-delayed Codes has also been a key expectation of the industry, and the government has been working to build consensus on its rollout with state governments and unions, resources confirmed.
The resources also confirmed that as a last attempt, the ministry of labour and employment is exploring ways to take the process on for its implementation. Earlier, the government has faced a stiff resistance from trade unions on the Codes, which they have termed anti-worker. The unions have opposed many provisions of these labour Codes, such as allowing companies for lay-off, retrenchment and closure without government premission upto 300 workers. And restriction on demonstration and agitations, etc., if the Codes are implementated.
The labour ministry has taken note of union concerns and is open to reviewing various provisions of the Codes including the proposal to cap base salary at 50% of the total salary, which increase the provident fund contribution amount and reduce the take-home salary of the workers. This is one of the significant concern for both employers and workers.
Sources indicate, “the rules under the Codes can be take care of these concerns and give States and Central government flexibility to make any changes, without amendment in the Codes”. To roll out the Codes, the labour ministry has held a series of meetings with employers associations and trade unions, earlier this year.
Because, if the Codes don’t go through now, then their implementation will be remain pending until the series of states elections in 2023 and general election in 2024 done. There has been a lot of expectation from industry that these Codes will be implemented but the way government is doing, it is difficult to decide the fate of new labour Codes. It is leading to a situation like the farm laws, which eventually had to be repealed.
As a final expactation, the government may announce its intent to roll out the four Labour Codes from the start of next fiscal year in the coming Budget. It is likely to spell out certain changes in the codes to allay the concerns of trade unions and a few state governments that continue to be wary of the reformist laws.
