Govt. defers implementation of Labour Codes due to Covid-19 Outbreak

Reason behind deferment of New Labour Codes:

  1. Resurgence of Covid-19 cases in major industrial states have raised apprehensions that economic recovery seen so far could be stalled or even reversed if the cases continue to go up.

Crux about New Labour Codes:

The labour ministry had amalgamated 29 labour laws into four Codes to significantly reduce compliance burden, improve the ease of doing business, greater ease of hiring and firing of workers and enhanced flexibility to employers in terms of work hours.

Key Highlights:

  1. The government has deferred implementation of labour codes beyond April 1, citing delay on the part of states to finalise Rules.
  2. The move is expected to give more time and bandwidth to companies to retweak their salary structures and other human resource (HR) policies as certain provisions of the Code would have led to increase in employee cost for the companies.
  3. The government wants at least some industrial states to notify rules across four labour codes along with the Centre to avoid any legal void.
  4. Only Jammu and Kashmir has notified Rules for the codes while states of Uttar Pradesh, Bihar, Uttarakhand and Madhya Pradesh have put up draft Rules for two Codes while Karnataka has put it up for one Code.

Source: ET News

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