The Indian Parliament passed three labour codes recently – on industrial relations; occupational safety, health, and working conditions; and social security – proposing to simplify the country’s archaic labour laws and provide impetus to economic activity without compromising on the workers’ benefits. These labour codes can have a transformative impact on labour relations in India. Along with the ‘Code on Wages Act – 2019,’ these can significantly ease the conduct of business by amalgamating a plethora of Central and State laws on labour.
To simplify and rationalize the existing 29 labour laws that govern the relationship between workers, employing entities, trade unions, and the government, 4 new labour codes have been enacted:
- The Code on Wages, 2019
- The Code on Social Security, 2020
- The Occupational Safety, Health, and Working Conditions Code (OSH), 2020
- The Industrial Relations Code, 2020
While the newly enacted codes have certainly brought in some novel provisions and improvements, the changes are incremental at best. The overall labour law landscape won’t be consolidated and will continue to have different state and central laws. The upcoming year will see many of the changes being formalized and implemented.
This Zinnov document decodes the nuances of the labour codes and how they will affect organizations in the Indian technology ecosystem. It also breaks down the steps that employers will need to take in the wake of the enactment of these labour codes.
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