States can draft labour code rules at their pace if aligned with new laws

Reportedly, the centre is in works to come up with the rules under the new codes by the first week of December, following which there will be a 45 day window for stakeholder consultations

In a bid to give effect to the recently notified four labour codes, states can come up with rules within their jurisdiction ‘as and when’ they please, provided the rules are aligned with the “spirit” of the new codes, official sources told Business Standard.

 

“Since labour is a concurrent subject, the new codes require each state to notify its own rules in its sphere. Hence, they can either adhere to the timelines followed by the Centre or follow their own timelines, provided the broader spirit of the codes remains intact. Uniformity and harmonisation is the key, going forward,” the sources said. 

 

Reportedly, the Centre is in works to come up with the rules under the new codes by the first week of December. Following this, there will be a 45-day window for stakeholder consultations, before the rules are put into practice.

 

The Centre on Friday notified the four new labour codes —the Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and Occupational Safety, Health and Working Conditions Code (2020). These are set to replace the existing 29 central labour laws. 

 

“Barring a few, states have largely prepared their own rules and have also pre-published them — like the Centre has done sometime back. Since some time has elapsed and the Centre is also taking a fresh look into its rules, it would be appropriate for the states also to relook and come up with new rules,” the sources said. 

 

So far, 34 states and Union Territories (UTs) have published draft rules under the Code on Wages, 2019, 33 under the Industrial Relations Code, 2020, 32 under Code on Social Security, 2020 and 33 under the Occupational Safety, Health and Working Conditions Code, 2020. 

 

“In our meetings with states, including the one held on November 11-12, we have conveyed our viewpoint regarding the rules. Almost all of them have expressed willingness to follow central timelines. We are continuously in touch with them, if they require any assistance. We also remain hopeful that West Bengal will come on board and publish its rules. In case it doesn't come on board, it risks facing isolation in terms of fresh investment,” the sources added.  

 

Experts have pointed out that since the new codes have inordinate scope for rule making exercise by the ‘appropriate’ government and they have also seen opposition from various quarters, it could lead to an uneven rollout of the new codes, thus jeopardising the entire reform exercise.

 

Labour economist KR Shyam Sundar says that the new codes have overly relied on rule making, giving a lot of scope for the states to interpret as they wish, thus posing a challenge to the reform agenda of the government. Harmonisation in rules will be key going forward.