Factory reset

Making labour codes effective is a big step forward

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The Union government last week brought into effect four labour codes aimed at modernising India’s labour-market regulation.

As reported by this newspaper, the Codes have become effective for standalone provisions where further rule-making is not needed. Since the draft rules were framed a few years ago, the government will make the necessary changes to reflect new realities. It is expected to come up with revised draft rules for consultation. The Codes will be fully operational once the revised rules are notified. The bringing in of the Codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020) — will be one of the biggest reforms in recent years. Outdated labour laws and regulations are believed to be one of the biggest impediments to sustained higher growth, particularly in the manufacturing sector.