{"id":43879,"date":"2025-05-22T20:21:41","date_gmt":"2025-05-22T14:51:41","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=43879"},"modified":"2025-05-22T20:22:02","modified_gmt":"2025-05-22T14:52:02","slug":"centre-urges-states-to-implement-labour-codes","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/22-05-2025\/centre-urges-states-to-implement-labour-codes","title":{"rendered":"Centre Urges States to Implement Labour Codes"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Polity and Governance; GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Government has urged states and Union Territories (UTs) to align their existing labour laws with the spirit and provisions of new labour codes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Background<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Between <strong>2019 and 2020,<\/strong> Parliament passed four consolidated labour codes to replace 29 outdated central labour laws:\n<ul class=\"wp-block-list\">\n<li><strong>Code on Wages, 2019: <\/strong>Regulates wages, bonus payments, and equal remuneration.<\/li>\n\n\n\n<li><strong>Industrial Relations Code, 2020:<\/strong> Deals with trade unions, employment conditions, layoffs, and dispute resolution.<\/li>\n\n\n\n<li><strong>Code on Social Security, 2020: <\/strong>Merges laws on provident funds, pensions, insurance, maternity benefits, and gratuity.<\/li>\n\n\n\n<li><strong>Occupational Safety, Health and Working Conditions Code, 2020: <\/strong>Consolidates regulations on safety, working hours, health, and welfare.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The reforms were intended to <strong>streamline regulation, improve working conditions, and support industry growth.<\/strong><\/li>\n\n\n\n<li>The new Social Security Code contains provisions for extending benefits to<strong> gig and platform workers<\/strong> also.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Progress at the State Level<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Labour being on the <strong>Concurrent List,<\/strong> states must frame their own rules under the new codes.<\/li>\n\n\n\n<li>Many states have proactively begun amending their respective labour laws to reflect the intent and provisions of the new codes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Amendments Undertaken by States and UTs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At least <strong>20 states and UTs<\/strong> have amended laws to increase the threshold for prior government approval for<strong> retrenchment, layoff, or closure from 100 to 300 <\/strong>workers.<\/li>\n\n\n\n<li><strong>19 states and UTs <\/strong>have doubled the worker threshold for the application of the Factories Act:\n<ul class=\"wp-block-list\">\n<li>From <strong>10 to 20 workers<\/strong> (where power is used in manufacturing).<\/li>\n\n\n\n<li>From <strong>20 to 40 workers<\/strong> (where power is not used).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Contract Labour Act Applicability:<\/strong> 19 states and UTs have raised the threshold for application from 20 to 50 workers.<\/li>\n\n\n\n<li><strong>Night Shifts for Women:<\/strong> 31 states and UTs have allowed women to work night shifts (subject to specific safety conditions such as transport, lighting, and security).<\/li>\n\n\n\n<li>All states and UTs have notified reforms requiring <strong>prior compliance notices<\/strong> before prosecution, a major component of the codes meant to reduce inspector raj.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Implementation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Delayed Notification by the Centre: <\/strong>Although the codes were passed between 2019 and 2020, they are yet to be formally notified for implementation at the central level.\n<ul class=\"wp-block-list\">\n<li>The absence of a clear central timeline has created uncertainty for states, industries, and workers alike.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Need for Synchronised and Uniform Rollout: <\/strong>While many states have moved ahead with individual reforms, the lack of coordination between Centre and states can lead to:\n<ul class=\"wp-block-list\">\n<li><strong>Legal ambiguities and overlaps<\/strong> in enforcement,<\/li>\n\n\n\n<li><strong>Compliance difficulties<\/strong> for firms operating across multiple states,<\/li>\n\n\n\n<li><strong>Uneven labour standards<\/strong>, undermining the concept of a national labour market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Opposition from Trade Unions:<\/strong> Multiple national trade unions have opposed the codes, alleging that;\n<ul class=\"wp-block-list\">\n<li>They <strong>dilute job security,<\/strong> especially with relaxed norms for retrenchment and fixed-term employment.<\/li>\n\n\n\n<li>The emphasis is more on <strong>employer flexibility than on worker welfare.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructural Gaps: <\/strong>Many state labour departments lack the capacity\u2014both in manpower and digital systems\u2014to implement new compliance and inspection frameworks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Centre<strong> must provide clarity on notification timelines<\/strong> to facilitate coordinated implementation.<\/li>\n\n\n\n<li><strong>Capacity-building and awareness<\/strong> at the state level are essential for effective enforcement.<\/li>\n\n\n\n<li><strong>A balanced approach is required<\/strong> to ensure both worker welfare and industrial competitiveness.<\/li>\n\n\n\n<li>There should be inclusive consultations with trade unions, industries, and civil society groups to address concerns.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concluding remarks<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The proactive role of states in aligning with labour reforms underscores a shared objective of improving industrial investment and employment generation.\u00a0<\/li>\n\n\n\n<li>However, the Centre must now move decisively to ensure nationwide implementation, especially in areas like social security for gig workers, to realise the full potential of these landmark reforms.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.business-standard.com\/industry\/news\/labour-codes-rollout-centre-nudges-states-to-get-in-driver-s-seat-125052101265_1.html\" rel=\"nofollow noopener\" target=\"_blank\"><strong>BS<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">The Union Government has urged states and Union Territories (UTs) to align their existing labour laws with the spirit and provisions of new labour codes.<\/li>\n<p><\/p>\n<h3><strong>Progress at the State Level<\/strong><\/h3>\n<li class=\"ms-5\">Labour being on the Concurrent List, states must frame their own rules under the new codes.<\/li>\n<li class=\"ms-5\">Many states have proactively begun amending their respective labour laws to reflect the intent and provisions of the new codes.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/22-05-2025\/centre-urges-states-to-implement-labour-codes\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43879","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=43879"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43879\/revisions"}],"predecessor-version":[{"id":43901,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43879\/revisions\/43901"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=43879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=43879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=43879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}