The Labour Codes are set to soon become law. The 4 Codes consolidate and subsume 29 critical labour legislations and bring about many fundamental changes that companies in India will need to align with very quickly.
The Four Codes, namely the Code on Wages, 2019, Social Security Code, 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Industrial Relations Code, 2020 have been enacted as law and await a date of notification. States have been tasked with making Rules and as it stands, with over 15 States having completed this exercise and many more are in various stages of drafting rules.
The Codes bring several changes that are fundamental to the way companies operate in India. From prohibiting contract labour in core employment to changing the very definition of “wages”, the Codes are the first step to labour reform that has been long overdue. This reform is set to bring about transparency, ease of doing business and ease of compliance. However, it is also going to require companies to overhaul some facets of their operations and the very mindset with which they function.
So what is it that companies are going to need to do? What are the changes that are coming and how are they set t impact you? Our third knowledge paper (Stepping into a New Era of Labour Reforms), does a deep dive into the 4 Labour Codes. The paper examines in detail the key changes brought about by the Codes and their corresponding impact on business and the industry at large. The paper identifies the key steps taken by the Codes to usher in the era of labour reform.
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