In preparation for implementing the four new labour codes by the BJP-led NDA government, Labour Secretary Sumita Dawra will preside over a meeting with labour secretaries and commissioners from all states on 20 June. The aim is to evaluate state regulations and recommend adjustments where they fall short of the model rules established by the Centre.
The purpose of this meeting is to expedite the adoption of the codes at the state level, ensuring states are ready for their national implementation, a senior government official disclosed to the Economic Times.
While not choosing to disclose their identity, the official said, “The Centre wants to ensure there is no divergence in rules among states and the central rules, and that all of them are in sync with the central rules. This will ensure uniformity and help in the smooth implementation of the codes.”
Labour reforms, which were postponed to avoid backlash before the general elections, are part of the government’s 100-day agenda. Pending since 2020, these reforms are seen as essential for improving business ease and attracting investment.
To enhance ease of doing business and advance universal social security, the government amalgamated 29 central labour laws into four codes: the Code on Wages, 2019; the Industrial Relations (IR) Code, 2020; the Code on Social Security (SS Code), 2020; and the Occupational Safety, Health and Working Conditions (OSH&WC) Code, 2020.
At least 22 states and union territories have established rules for all four codes, while six have done so for three codes. However, eight states, including Meghalaya, Nagaland, Tamil Nadu, West Bengal, Lakshadweep, Sikkim, Andaman & Nicobar Islands, and NCT of Delhi, have yet to pre-publish draft rules under one or more codes. The forthcoming meeting will also address the utilisation of funds collected under the Building and Other Construction Workers’ Act, 1996, to enhance welfare measures for unorganised sector workers.
Government estimates indicate that over 50 million building and construction workers are registered with state welfare boards across India. The cess collected, at a rate of 1% of construction costs, amounts to over ₹75,000 crore. More than 50% of these funds have been utilised for the welfare of construction workers, with significant expenditure during the pandemic.
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