New Delhi: The window for the government to operationalise the labour codes may be fast diminishing with multiple states headed for assembly elections by the end of next year followed by general elections in 2024, at least half-a-dozen experts told ET.
Implementation of the codes – touted as a significant labour reform-looks to be on the back burner as the government would not want them to meet the same fate as farm laws, they said.
The government has adopted a wait-and-watch policy as neither the employers nor the trade unions are keen on the labour codes, said a top government official who did not wish to be identified.
“The government is apprehensive that the codes may backfire as had happened in the case of farm laws,” the official told ET. “Hence the wait and watch mode till these have the clear backing of all stakeholders.”
The government had in 2019 and 2020 passed four labour codes – Code on Social Security, 2020, Code on Wages, 2019 Industrial Relation Code, 2020, and Occupational Safety Health, and Working Conditions Code, 2020- to replace 29 labour laws. While the President of India has given assent to all the codes, the government is yet to implement them.
Beginning of the next fiscal year is considered to be an appropriate time to roll out the codes as they have implications on the salary structure. In fact, experts said, April 2023 is the last opportunity for the government to implement the codes before the country goes for general elections in the following year.
“We feel if Apri12023 is crossed, the codes may not see the light of the clay with states not keen on rollout though the Centre continues to reiterate that it has the intent to roll out at the earliest,” a key person in the staffing industry said on condition of anonymity.
So far, there has been no timeline from the Centre on the implementation of the codes.
There are significant reservations in both the trade unions and the employers over the key provisions of the codes on wages and industrial relations.
A representative of employers, who is in dialogue with the government on the labour codes, said there is a possibility that the government could have put them on the backburner, fearing agitation.
“This is very unfortunate for the industry and will have implications on attracting investments and employment generation.” the person said.
The four labour codes have missed several deadlines in the past despite the fact that the Centre has notified the rules across all the codes and the majority of states have notified the draft rules in their domain.
