Labour codes News

Normal life in Ernakulam, Kerala, is impacted by today's Bharat Bandh, with public transport and shops shut. The nationwide strike by trade unions protests central government policies and demands the repeal of new labour codes.  

The Centre has already finalised the rules under these codes and now states are required to frame regulations on their part as labour is a concurrent subject. The central government has notified four labour codes, namely, the Code on Wages, 2019. A senior official said that the four labour codes are likely to be implemented by the next fiscal year.

The labour ministry had envisaged implementing the four codes on industrial relations, wages, social security and occupational health safety & working conditions from April 1, 2021. As per the new wages code, allowances are capped at 50 percent which basically means that half of the gross pay of an employee will be basic wages. After the implementation of new codes, the take-home pay of employees would reduce while provident fund liability of employers would increase in many cases.

The pandemic has had a disastrous effect on many states and they have now slowed down on the framework for the implementation of the labour codes. Despite the repeated attempts by the Centre to convince the states to implement the draft rules, the states are taking their own sweet time due to the ongoing pandemic. This delay in the implementation will eventually be a boon for Indian corporates that were worried about the complex changes required in order to comply with the new codes.

The implementation of codes on wages, occupational safety, health and working conditions and social security will ensure social security to all employees, he said. "The process of making rules under the four Labour Codes is going on. The rules will be ready in the next few weeks," he added.

Gangwar said there would be a free annual health checkup for workers of a certain age group, and added that under the Occupational Safety, Health and Working Conditions CodeThe code was so far applicable only in certain areas like mines, construction, plantation and motor transport, but "now it will be implemented on IT and other services sector," he said Provisions have been made for the inclusion of people working in the entertainment sector, he added

The NDA Government is bringing in different initiatives like Universal Account Number (UAN), skill development, among others, for the benefit of workers, the Minister maintained.