India’s economic landscape has been undergoing significant transformations, driven by technological advancements, globalization.
India’s economic landscape has been undergoing significant transformationsIndia's economic landscape has been undergoing significant transformations, driven by technological advancements, globalization, and evolving global geopolitical scenario. Amidst these changes, the introduction of new labour codes by the Indian Government aims to reshape the way companies compensate, regulate, and manage their workforce. In this dynamic environment, Indian companies must proactively prepare themselves to adapt to the new regulatory framework while remaining agile and competitive.
In furtherance of its motto of ease of doing business and with a view to harmonize the multiple labour legislations prevailing in the country, the government has consolidated 29 central labour laws (out of 44 existing central laws) into four labour codes i.e. Code on Wages, 2019; Code on Social Security, 2020; Industrial Relations Code, 2020 and Occupational, Safety, Health and Working Conditions Code, 2020 – (collectively referred to as the “Labour Codes”).
It is worthwhile to note that labour codes had received the approval of both houses of the parliament as well as Hon. President’s assent in the year 2019 and 2020 and the draft central rules on all the four labour codes have already been pre-published by the Central Government. As labour is a concurrent subject any change requires even the State Governments to be on board. As per the latest published data, many of the states and Union Territories had also published the state level draft rules for all four or few of the Labour codes. However, the final notification of making these codes effective is something which has been on the anvil for some time now.
With the groundwork laid and the spotlight on post-election priorities, the implementation of the labor codes may take center stage for the new government. But the pressing question remains: are businesses adequately prepared for this monumental shift?
As the countdown to potential enforcement begins, we have unveiled key strategies that companies may need to consider to stay ahead of the curve in India's evolving business landscape.