Implementing Modi govt’s four labour codes is a top priority, but could take months as states lack understanding of reforms. Consultations underway for alignment with federal rules.
New Delhi Implementing the four labour codes passed by the Modi government in its previous term is a top priority but the process could take several months because many states lacked “a full understanding” of the gamut of reforms and their scope, a person familiar with the matter said on Friday.
The Mansukh Mandaviya-led labour ministry is understood to be preparing for a round of consultations with states to ensure that draft rules framed by a majority of state governments don’t contravene federal rules under each code, which is a key issue, the person said.
The four labour codes, passed by Parliament between 2019 and 2020, consolidates a complex web of 29 central labour laws and they seek to bring sweeping changes to India’s job market. The reforms to the country’s decades-old labour norms are a central part of Prime Minister Narendra Modi’s steps to drive up investments and create jobs.
The codes have yet to be implemented because eight states are yet to “pre-publish draft” rules under each code; some labour unions have opposed the laws saying they make hiring and firing easier; and not all states have been able to frame rules appropriately.
States need to pass the subordinate legislation for the codes since labour falls in the concurrent list of the Constitution, which gives both the Centre and states jurisdiction over the subject.
“States need to be adequately sensitised about the intention and scope of the labour codes so that their rules are in conformity with the central rules so that there is uniformity, which is not the case,” the person cited above said.
A second person who took part in these discussions said that talks are on with states at multiple levels and workshops are being planned to ensure that labour norms of states and the Centre are aligned.
The four legislation are the Code on Wages, 2019; the Industrial Relations Code, 2020; The Occupational Safety, Health and Working Conditions Code, 2020; and the Code on Social Security, 2020.
Efforts to align states’ rules with federal ones have been ongoing. Last week, labour secretary Sumita Dawra held consultations with state governments’ officials to review the draft rules and their progress.
Many state-level rules diverge from those framed by the Centre. For instance, federal rules and those framed by most states provide for revision of dearness allowance twice a year. Andhra Pradesh however wants one revision annually.
Major labour unions have to be on board too, but many are opposed to the laws or their provisions. For instance, under the Industrial Relations Code, firms employing up to 300 workers will not require government permission to lay off workers or shut plants, up from the previous cap of 100.
The code also makes it mandatory for trade unions to represent at least 30% of workers in a given establishment for official recognition as the “negotiating union” in case of disputes. If there are multiple unions, then the threshold prescribed is 51%.
Ravinder Himte, the general secretary of the Bharatiya Mazdoor Sangh (BMS), said that some of the codes’ provisions were unacceptable, especially in the Industrial Relations Code and The Occupational Safety, Health and Working Conditions Code, 2020. The BMS has submitted its recommendations. The Rashtriya Swayamsevak Sangh (RSS)-affiliated BMS however said it “whole-heartedly welcomed” the other codes.
