Some states to roll out labour reforms in 3-5 months

By: |
July 07, 2021 3:30 AM

The labour code on wages was passed in August 2019; Parliament approved three other codes – on industrial relations, social security and occupational safety & health – on September 23 last year.

The shortage — in the range of 20% to 40% of the usual workforce – threatens to derail the recent growth momentum and impair exporters’ ability to honour supply commitments on time amid a fast depletion of inventory.The shortage — in the range of 20% to 40% of the usual workforce – threatens to derail the recent growth momentum and impair exporters’ ability to honour supply commitments on time amid a fast depletion of inventory.

Labour reform proposals brought in through four labour codes like granting freedom for businesses to retrench workers without prior government permission and to ensure minimum wages to all workers are likely to be rolled out in the next three to five months in some states, including Uttar Pradesh, Bihar and Madhya Pradesh, according to an official source.

The labour code on wages was passed in August 2019; Parliament approved three other codes – on industrial relations, social security and occupational safety & health – on September 23 last year.

The labour codes have a concept of the appropriate government. The central government is the appropriate government for public sector undertakings, railways, ports. But for the vast majority of the industry, which practically covers all the private sector, the state government is the appropriate government. Until the states come out with their own rules, then there is no framework at all that will apply to those entities.

On its part, the Centre is ready with the rules for implementation under all the four codes.

“Considerable progress has been made by the states, we have been following the states continuously. Five states are ready with the draft rules. Around 12 states have almost finished works on finalising the rules and have sent the draft rules to their respective labour departments for vetting. The roll-out might happen in 3-5 months,” a senior labour ministry official said.

The Centre had earlier put on hold the original plan to roll out the codes from April 1, 2021, citing the lethargy displayed by several states. Though no fresh deadline was given then, senior government officials hinted that by June rules may be implemented in the central sphere hoping that major industrialised states will come out with the rules to implement them in their arena.

The rapid surge in coronavirus cases further delayed the implementation of the ambitious labour reform proposals.

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