Centre calls meeting with States to speed up Labour Code implementation

The Indian government has called a meeting with all states and union territories to speed up the implementation of four new labour codes. Labour Minister Mansukh Mandaviya met with ministers from all 36 states and union territories at a two-day conference starting on January 29. The main goal was to review progress and finalize the draft rules by March 31, so the new laws can be rolled out in the next financial year.

States agree to speed up process

All states have agreed to complete their draft rules by the deadline. This is an important step because the new labour codes will simplify regulations and improve employment opportunities. One major update is that West Bengal, which had delayed its draft rules for a long time, has now committed to completing them.

The meeting was also attended by Labour Minister of State Shobha Karandlaje and Labour Secretary Sumita Dawra. Apart from the labour codes, they discussed other reforms to increase employment and make doing business easier in India. These reforms aim to reduce complicated regulations that businesses have to follow.

The four labour codes were passed by Parliament in 2019-20 to make India’s labour laws simpler and more modern. They combine 29 old labour laws into four codes:

1. Occupational Safety, Health, and Working Conditions (OSH) Code, 2020 – Focuses on improving workplace safety and working conditions.
2. Code on Social Security, 2020 – Ensures social security benefits for workers, including gig workers.
3. Industrial Relations Code, 2020 – Covers hiring and firing rules and relationships between employers and employees.
4. Code on Wages, 2019 – Sets a national minimum wage for workers across India.

ALSO READ: Amid Maha Kumbh tragedy, revisiting India’s deadliest stampedes over the years

ALSO READ: Donald Trump reveals PM Narendra Modi may visit the US in February

Challenges in implementation

Labour laws in India come under the Concurrent List of the Constitution. This means both the Central and State Governments have the power to make rules. However, some states have been slow in preparing their draft rules. This has delayed the implementation of the new labour codes.

To help states, the Central Government has organized six regional meetings in different state capitals. The goal is to ensure uniformity in state-level rules so that all workers across India get similar benefits. Officials acknowledge that minor variations between states are expected, but the rules need to be mostly the same to be effective.

Apart from West Bengal, the only other state that has not yet completed its draft rules is Nagaland. However, Nagaland has informed the Centre that it will finalize its rules soon. Once this is done, all states will be ready for the next step of implementation.

Why are these Labour Codes important?

The new labour codes are expected to:

• Attract more investments by making it easier to do business.
• Provide better job security for workers, especially in factories and industries.
• Ensure social security for gig workers, who currently lack benefits like pensions and insurance.
• Introduce a national minimum wage, so workers get fair salaries across the country.

Labour unions have opposed some provisions, especially the new hiring and firing rules. The codes allow factories with fewer than 300 workers to fire employees without government approval. Some unions argue this will make it easier for companies to remove workers without proper justification.

Despite these concerns, the government is moving forward with its plan to roll out the codes in early 2025. It is also working on a separate social security framework for India’s 10 million gig workers. This will provide financial protection for people working in platforms like Zomato, Swiggy, Ola, and Uber.

By ensuring all states complete their draft rules by March 31, the government hopes to fully implement the labour codes in the upcoming financial year.