The four labour codes, i.e., Code on Wages, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code were praised and lauded as a solution to the complex and archaic labour regime in India when they were first announced in 2019. Almost 3 years later, the enthusiasm behind the Codes has been losing steam primarily due to a delay in forming rules by the State Governments. As labour is a concurrent subject, the Government has held back on the implementation of the Codes until the rules are prepared for fear of creating a legal vacuum, should the Codes be introduced before the rules.
Initially, the Codes were introduced to ease compliance and uniformity by promoting the ease of doing business, reducing bureaucratic holdup and red-tapism, improving working conditions and implementing procedures that could be technologically sustained. However, the on-ground realities are far from the perfect picture that was envisaged and the disconnect between the planning and implementation of the Codes is evidently apparent. Apart from the delay on part of the State Governments, rising concerns regarding the interests of workers and vehement opposition from employer organisations and trade unions alike has also stalled the Codes, thus bringing its initial progress to a disappointing standstill.
In introducing the new labour codes, the Government has attempted to cover major labour aspects such as wages, social security, provident fund, safety and welfare and working conditions within 480 sections; a stark difference from the 1228 sections that were earlier distributed amongst 29 odd laws.
However, it remains to be seen if the Codes will truly achieve the considerable goals it has set out for itself.