The implementation of the new labour codes in India appears to have been delayed. A press release issued by the (Indian) Ministry of Labour and Employment (“Labour Ministry”) on March 21, 2022 (“Press Release”)1 providing an update on the progress of the new labour codes, does not contain information of their effective date. Accordingly, and contrary to previous speculations, it now seems unlikely that the new labour codes will be made effective from April 1, 2022, which is the beginning of the new financial year in India.
In the bid to promote ease of doing business in India, reducing red-tapism of labour inspectors and improving working conditions of workers and ease of compliance for employers through use of technology2, the Indian government has codified 29 national labour statutes into four labour codes:
1. The Code on Wages, 2019 (“Wages Code”)
2. The Industrial Relations Code, 2020 (“IR Code”)
3. The Code on Social Security, 2020 (“SS Code”)
4. The Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”).
These four labour codes have been enacted, although a separate notification is awaited on their effective date. Please see our previous legal alert on the new labour codes here.
The Press Release provides the following updates in relation to the labour codes:
1. All four labour codes have been made available on the website of the Labour Ministry inviting comments from the stakeholders.
2. The...
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