With states going about with bringing reforms to labour laws, the focus is now on the Centre and its proposed codification of a host of overlapping labour laws into four codes, them being Industrial Relations (IR) Code Bill, Wages Code, Occupational Safety Code, and Health and Working Conditions Code
With the economic impact of the coronavirus pandemic gradually unfolding, the Madhya Pradesh government - on May 7 - granted companies various concessions to meet labour requirements during this period.
It gave flexibility to companies to hire and fire employees, exemptions from labour department inspections, exemptions from maintenance of registers, and has allowed extended shift timings.
This was followed by the Uttar Pradesh government approving an ordinance on May 8 to exempt various industries in the state from different labour laws for three years to revive the state's economic activities.
The ordinance exempts factories, businesses, establishments and industries from the purview of all, except three labour laws and one provision of another Act for three years.
With states going about with bringing reforms to labour laws, the focus is now on the Centre and its proposed codification of a host of overlapping labour laws into four codes, them being Industrial Relations (IR) Code Bill, Wages Code, Occupational Safety Code, and Health and Working Conditions Code.
Of these, the code on wages has been cleared by the Parliament. The other three are awaiting approval. The industry has been eagerly waiting for these reforms but stiff political opposition as well as opposition from trade unions have made it difficult for these codes to get approved by Parliament.
"The standing committee on labour has submitted its report to the government. The government is in the process of studying all the suggestions and would be incorporating those that deem most fit. The Occupational Safety, Health and Working Conditions (OSH) Code bill could have close to 50 amendments. The process is still on," a senior government official said.
The IR Code seeks to amalgamate, simplify and rationalise provisions of three central enactments relating to industrial relations -Trade Union Act of 1926, Industrial Disputes Act of 1947 and Industrial Employment (Standing Orders) Act of 1946. As many as 44 central labour laws are expected to be subsumed under these four labour codes.
With states having initiated changes in labour laws to attract businesses, the centre would expectedly move fast on getting the remaining codes passed as soon as Parliament convenes.
For long, the Indian industry has been demanding rationalisation and reform of India's existing labour laws in order to increase ease of doing business. The outbreak of the COVID-19 pandemic and the ensuing lockdown has crippled economic activities. In order to make up for lost production and trading, India has been trying to attract businesses exiting China into India.
However, both Uttar Pradesh and Madhya Pradesh governments have been criticised by experts, who have said that the states have altogether suspended labour laws."Reform shouldn't be thought of in the context of pro worker or pro employee. It should balance the interests of industry and workers. If industry is not doing well the obviously there wouldn't be jobs. But at the same time, industry also needs those workers," said Radhicka Kapoor, a fellow at the Indian Council for Research on International Economic Relations (ICRIER).Special Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365
