The recent government regulation to subsume multiple labour laws into four codes is a major reform but the overall success of the labour codes would depend on how the rules are framed and implemented on the ground, says an expert.
Parliament in its just-concluded session passed three labour code bills: the Industrial Relations (IR) Code, the Social Security Code, and the Occupational Safety, Health and Working Conditions Code (OSH).
The Wage Code Bill, 2019, was passed by Parliament last year.
“A delicate balance was needed to meet the needs of both employers and employees and the provisions in the Codes appear to have met that balance,” said Vishal Grover, Practice Leader, Retirement Solutions, Aon India.
According to Grover, some of the big reforms impacting employers include flexibility to hire fixed-term employees, relaxation in rules around retrenchment, inability of unions to go on strike without giving sixty-day notice to the employer and single licensing norms for contractors.
Source: Business Standard
