Labour Code Impact – A Brief Analysis

The government is all set to regularize the new Labour Codes. With rules expected to come into force shortly the organizations/employers will need to sync themselves with new rules with new upcoming definitions for wages, gratuity and new ways of calculating provident fund and other submissions.

The four new labour codes – Code on Social Security 2020, Occupational Safety, Health and Working Conditions Code 2020, Industrial Relations Code 2020, and Code on Wages 2019 – will subsume the existing 29 central labour and industrial laws and aim to avoid multiplicity of laws. Why does the government want to enact the codes? – The government wants to facilitate ease of compliance and achieve equity for all. The new codes will ensure better use of technology for various compliances and effective enforcement. The new labour codes also raise concerns w.r.t. whether they shall apply only to blue collar employees or would they apply to all employees in general? It is clearly