Labour code new rules: Here’s what will change after all states roll out drafted rules

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In conversation with PTI, Union Labour Minister Bhupender Yadav unveiled that nearly every state has prepared the draft rules on the four labour codes. He added that the new rules will be implemented at an appropriate time.

While speculations remain over pushing all four codes simultaneously or staggering them, the Centre is hoping for all the states to release the rules for labour codes soon.

Speaking to PTI, Yadav said, “Almost all states have finalised draft rules on four labour codes. We will implement the codes (in one go) at an appropriate time”. He added that some states are still in the process of writing draft rules.

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Which states have already framed the draft rules for labour codes?

While Rajasthan has finalised two codes of the draft rules, West Bengal is still in the finalising process.

Several Northeast states, including Meghalaya, haven’t finished the process of drafting rules for the four labour codes.

The rollout of labour codes has been delayed due to the Covid-19 pandemic. The Centre has notified four labour codes to replace the 29 sets of labour laws, including The Code on Wages, 2019; The Industrial Relations Code, 2020; The Code on Social Security, 2020; and The Occupational Safety, Health and Working Conditions Code, 2020.

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The states are now expected to frame regulations on their part as the Centre has already pre-published the draft rules.

Notably, labour code rules are supposed to be framed by both the central and state governments.

The new labour laws consider the changing labour market trends and the concerns of the unorganised sector workers, including the self-employed and migrant workers.

The power to make labour code rules remains entrusted to the Centre, state government and appropriate government.

Here’s what will happen after the implementation of the new labour codes

1. Reduced in-hand salary, increased PF and gratuity
2. 12 hours work week
3. Modification in earned leave policy