State rules against basic ethos, spirit of labour codes, finds Study

The rules framed by various states and union territories under the new labour codes have “too much” divergence and go against the basic ethos and spirit of the new codes, according to a study by a government agency.
 

In 2019 and 2020, 29 central labour laws were amalgamated, rationalised and simplified into four labour codes covering wages, social security, industrial relations and worker safety. The central government has already pre-published the draft rules for all four codes. States are required to frame regulations on their part as labour is a concurrent subject. The Centre intends the rollout of the codes only when all states are on board for a seamless transit to the new legal framework in the country.
 

The study by V V Giri National Labour Institute notes that state/union territories (UTs) rules under these codes have also left some of the vital aspects uncovered and the divergence among these rules needs to be minimised to bring the required uniformity. “An objective analysis of these rules indicates that with respect to many of the aspects, there is too much divergence not only between the central and state/UT rules but also among the state rules. The rules of some of the states/ UTs prima facie seem to go against the basic ethos and spirit of the codes and may defeat the objective sought to be achieved,” it said.
 

“All these aspects require the attention and a re-look by the governments concerned,” the study notes. According to the study, 24 states/UTs have formed rules under all four codes, and West Bengal, Meghalaya, Nagaland, Lakshadweep and Dadar & Nagar Haveli are yet to formulate rules under any of the codes. “The vaguely constructed new labour laws are at the root of the malady. Had the new labour codes been formulated properly with precision and definitive character, states would have had less scope for interpretation. Also, the tripartite consultative bodies have not been utilised properly in the recent years to iron out the divergences that are bound to emerge due to the rulemaking at the state level,” said labour economist K R Shyam Sundar.
 

Lohit Bhatia, president of the Indian Staffing Federation says although the consultation process has slowed, he is hopeful that divergences won’t delay the implementation of these codes beyond the general elections next year.
 

“Mostly, there are some misgivings and some areas of concern. But, we are hopeful that once the ball starts rolling, it won't be tough to reach a consensus, like in the case of GST earlier,” he said.

The study also recommends the central government fix floor wages by taking into account the minimum living standards of the worker, the constitution of one or more national industrial tribunals for adjudication of industrial disputes involving questions of national importance, laying down the standards on occupational safety and health for workplaces, framing of schemes for unorganised workers, gig workers and platform workers among other things.

“If these very things had been defined precisely in the laws rather than leaving them for rulemaking by state governments, they would have accrued as rights to the workers,” Sundar said. 

Course of Action

• Fix floor wages by taking into account minimum living standards of the worker
   
• Constitute one or more national industrial tribunals for adjudication of industrial disputes involving questions of national importance
   
• Lay down the standards on occupational safety and health for workplaces
   
• Frame schemes for unorganised workers, gig workers, and platform workers