EMPLOYMENT LAW UPDATE
30th April 2024
Issue No. 2/24-25
LABOUR CODES ONE OF THE GOVERNMENT’S TOP AGENDAS POST ELECTIONS
BACKGROUND:
The Labour Codes are set to amalgamate 29 central labour laws in India and will comprise of four legislations known as the Code on Wages, 2019 (Published in 2019), Industrial Relations Code, 2020, Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (The IR Code, the SS Code and the OSHWC Code were published in 2020). (Collective referred to as the “Labour Codes”)
CURRENT STATUS:
Where the Labour Codes have individually been published in the official Gazette, the provisions of the same are yet to be put into effect.
The State Governments are also currently in the process of drafting their own State Rules in correspondence to the Labour Codes and it is yet to be seen when they will be implemented.
THE IMPLEMENTATION PLAN:
A senior government official, in conversation with the Economics Times News has indicated that implementation of the Labour Codes shall be one of the top agendas of the BJP Government’s 100-day plan post the general elections.
The BJP government plans to roll out the Labour Codes from the beginning of the next fiscal year on 1st April, 2025 in an attempt to sync it with the business cycle of companies.
The official has stated that it is important to come up with the rollout plan in advance, so that enterprises get enough time to prepare for the changes that will come in with the Labour Codes. Further, he stated that work is going on to make social security organisations such as the Employees’ Provident Fund Organisation (EPFO) and the Employees’ State Insurance Corporation (ESIC), receptive to the changes under the codes.
While elections are in progress and results awaited, it can be fairly assumed that whichever government comes to power, the implementation of the labour codes will be one of the top agendas. It is therefore crucial that companies take proactive measures to ensure compliance to the Labour Codes by relooking at their company Policy Manuals and Appointment Letters/Agreements to be ahead of the curve.
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