Government’s Strategic Play: Rolling Out Labour Codes Amidst Challenges
The ministry is holding talks with states that are behind in publishing rules, urging them to expedite their compliance. As per media reports, the ministry was cleared by a senior government official, and since the majority of states are on board, the Centre does not see any big challenge in rolling out the codes.
The Indian government is currently exploring various strategies to ensure a nationwide rollout of the four labour codes, despite some states and Union territories yet to come out with draft rules under one or more of these codes. The Ministry of Labour and Employment is considering several options, including a gradual repeal of the old labour laws, to ensure there is no legal void in states that have yet to draft rules.
Strategic Moves and Challenges
The ministry is holding talks with states that are behind in publishing rules, urging them to expedite their compliance. As per media reports, the ministry was cleared by a senior government official, and since the majority of states are on board, the Centre does not see any big challenge in rolling out the codes. “Once the old Acts are repealed, automatically new codes will prevail. If these states want to attract investments and create jobs, they will have to eventually align with the central policies,” the official said, adding that the Centre will continue to address any legal challenges that come up in the way.
Progress Report and the Reluctant States
As per the labour ministry’s monthly progress report, eight states and Union territories – Meghalaya, Nagaland, Tamil Nadu, West Bengal, Lakshadweep, Sikkim, Andaman & Nicobar Islands and NCT of Delhi are yet to pre-publish draft rules under one or more labour codes. Saraswathi Kasturirangan, partner at Deloitte India, agrees that the reluctance of a few states will not impact the rollout and the accruing benefits of the codes. “States not issuing rules under the new labour codes may not be a showstopper since many provisions, even today, are governed by central Acts,” she said.
Impact on Investments
Dorothy Thomas, partner at law firm Shardul Amarchand Mangaldas, is of the view that the rollout of the codes may result in continued agitation of labour unions in heavily industrialised states such as Tamil Nadu and West Bengal with a high degree of collective bargaining culture. “However, investments in such states would not be impacted as it is largely attributed to the pre-existing infrastructure and the trained labour available in these states,” Thomas said.
Additional Insights
The government’s move to roll out the labour codes is part of its broader strategy to improve the ease of doing business and move towards universal social security. The government had consolidated 29 central labour laws into four labour codes. These include the Code on Wages, 2019, the Industrial Relations (IR) Code, 2020, the Code on Social Security (SS Code), 2020 and the Occupational Safety, Health and Working Conditions (OSH&WC) Code, 2020.
The rollout of these codes is expected to bring about significant changes in the labour market, including greater flexibility for employers, improved rights and protections for workers, and a more streamlined regulatory environment. However, the implementation of these codes also presents several challenges, including the need for extensive capacity building and training for both employers and workers, the development of robust enforcement mechanisms, and the need to ensure that the rights and protections provided under the codes are effectively implemented in practice.
In conclusion, the government’s strategic play to roll out the labour codes is a significant step towards modernising India’s labour laws and improving the ease of doing business. However, the successful implementation of these codes will require concerted efforts from all stakeholders, including the government, employers, workers, and civil society organisations. As the government continues to navigate the challenges and opportunities presented by this ambitious reform, it will be crucial to ensure that the benefits of the codes are realised for all workers and employers across the country.
Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.
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