Centre looks to build consensus on stalled Labour Codes

The Centre is hoping to build consensus on the long-pending Labour Codes. The Mansukh Mandaviya-led Union labour ministry has once again initiated talks with industry bodies and trade unions on a possible implementation of the Labour Codes in recent weeks.

The government is of the view that implementing these Codes will improve the ease of doing business in the country and will give more confidence to investors to invest and in turn give a boost to manufacturing and job creation.

Sources pointed out that implementing the Codes will also enable wider social security coverage, especially for sections such as platform and gig workers that do not have any such facility at present. Some states such as Rajasthan and Karnataka have either passed or have introduced legislations for providing such coverage to these workers.

Implementation of the Codes, which were passed in the second term of the NDA government in 2019 and 2020, are seen as a key part of the government’s agenda. The Codes seek to modernise and harmonise the country’s multiple labour laws into four laws. However, they have not been rolled out due to vehement opposition from trade unions and because of certain concerns by employers’ associations and industry.

The four Labour Codes have consolidated 29 central labour laws into the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.

Labour Secretary Sumita Dawra had last month also chaired a national level videoconference with all States and union territories on assessing their preparedness for pre-publication of draft rules relating to the four Labour Codes, and requirements of capacity building and IT capacity.

While a majority of states have pre published draft rules required to notify the Codes, a few states are yet to do so. Consensus building with states is essential as labour is a subject on the concurrent list in the Constitution and both the Centre and States can enact legislation on it.