India’s Economic Survey Urges States to Speed Up Labour Codes Implementation
The Economic Survey of India has called on states to quickly implement the Labour Codes. These codes were created to simplify 29 central laws into four main codes, focusing on employment creation, wage regulation, industrial relations, social security, and occupational safety.
Background
Between 2019 and 2020, the Government of India reformed labour laws by combining 29 central laws into four Labour Codes. This process involved consultations with various stakeholders and the public from 2015 to 2019. The goal was to promote job creation, reduce outdated regulations, and improve transparency and accountability through technology.
The Four Labour Codes
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health, and Working Conditions Code, 2020
These codes provide a framework for wage regulation, industrial relations, social security, and occupational safety and health.
Current Status
Under India’s Constitution, both the Central and State Governments can legislate on labour issues. The Labour Codes empower these governments to make necessary rules, which must be published in the states’ Official Gazettes for public consultation. So far, 32 states and union territories have pre-published their draft rules under the Code on Wages, 2019; 30 under the Industrial Relations Code, 2020; 31 under the Code on Social Security, 2020; and 31 under the Occupational Safety, Health, and Working Conditions Code, 2020.
Key Features
One significant feature of the new Labour Codes is the extension of social security benefits to gig and platform workers through a Social Security Fund. This fund is financed by contributions from the Central and State Governments, aggregators, and Corporate Social Responsibility (CSR) activities. Additionally, the definition of inter-state migrant labour has been simplified for better protection.
Challenges and Recommendations
Despite these advancements, the Economic Survey highlights the need for states to speed up the implementation process. Delays and additional regulatory challenges continue to hinder employment generation. Addressing these issues is crucial for maximizing the benefits of the Labour Codes and creating a better environment for workers and employers in India.
Doubts Revealed
Economic Survey -: The Economic Survey is a report by the Indian government that reviews the country’s economic progress and challenges over the past year.
Labour Codes -: Labour Codes are new laws in India that combine 29 older laws into four simpler ones to make rules about jobs, wages, worker safety, and social security easier to follow.
States -: In India, ‘states’ are regions like Maharashtra, Tamil Nadu, and West Bengal, each with its own local government.
Implementation -: Implementation means putting a plan or law into action so that it starts working in real life.
Employment creation -: Employment creation means making new jobs for people so they can work and earn money.
Wage regulation -: Wage regulation involves setting rules about how much workers should be paid for their work.
Industrial relations -: Industrial relations are the relationships between employers (bosses) and employees (workers) in workplaces.
Social security -: Social security refers to programs that help people with financial support, like pensions or health insurance, especially when they are old or unable to work.
Occupational safety -: Occupational safety means making sure that workplaces are safe and healthy for workers.
Regulatory hurdles -: Regulatory hurdles are rules or laws that make it difficult to do something, like starting a new business or implementing new laws.
Enactment -: Enactment means officially making a law or rule active and enforceable.
Reforms -: Reforms are changes made to improve a system, like making new laws to make things better for workers.