Labour Codes Rollout Delayed as States Await Draft Rules – What HR Needs to Know

Summary
The rollout of India’s labor reform laws, including the Industrial Relations, Social Security, and Occupational Safety and Wages codes, has encountered delays as several states have yet to finalize the draft rules. While these codes were passed in 2019 and 2020, five states/UTs have not published their rules under these labor codes, with four additional states lagging behind on a fourth code. This delay signals that the implementation timeline might be pushed back further.

Key Updates:

• States lagging in drafting rules: West Bengal, Meghalaya, Nagaland, among others, are still behind.
• Government’s Response: The central government is proactively engaging with state governments to expedite the rule-making process.
• Impact on Implementation: The center plans to announce the implementation date for these codes by early next year, but some hurdles remain at the state level.

Analysis
The labour codes aim to streamline India’s labor laws by consolidating 44 existing Acts into four primary codes to boost economic growth, enhance ease of doing business, and simplify compliance. However, the delay in drafting rules at the state level is creating uncertainty for employers.

For HR professionals, it’s crucial to stay informed about the evolving status of these rules, especially in areas such as:

• Social Security Benefits for Gig Workers: The new codes aim to extend social security benefits to unorganized workers, including gig and platform workers.
• Employee Rights and Collective Bargaining: The Industrial Relations Code includes provisions for strengthening collective bargaining power through Negotiating Unions and Negotiating Councils for industrial establishments.

As organizations await full implementation, HR teams must begin auditing current policies and planning for compliance, especially in terms of payroll systems and employee contracts.

Key Focus:

• The new labor codes represent significant reforms in industrial relations and employee welfare.
• Updates regarding social security benefits, including coverage for gig workers, are crucial for future compliance.
• Keeping up with these developments will help HR professionals avoid potential penalties and ensure smooth operations once the codes are implemented.

🔗 Source: Ministry of Labour & Employment
🔗 Detailed Overview: Financial Express on Labour Code Delays