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Government postpones labor codes as states fail to finalize rules | India News


NEW DELHI: The Center has postponed the implementation of the four labor codes, originally scheduled for April 1, as several state governments have yet to finalize the relevant rules, giving companies more time to realign their wage structures in accordance with the new legal provisions. .
However, the delay will negatively affect migrant workers and concert workers, including workers engaged with platforms like Ola and Uber, who will now have to wait longer to receive Benefits that were going to flow to them under the new law.
Since work is a concurrent issue under the Constitution, both the Center and the states must notify the rules under the codes to enforce the law in their respective geographies.
Although the ministry had previously said the implementation of the central laws will not depend on the states setting their rules, a senior government official YOUR speaking on Wednesday, he said: “We would like to have some important states ready at least.”
Key states such as UP, Bihar, Madhya Pradesh, Haryana and Uttarakhand have only distributed the draft rules for two codes, while Karnataka has distributed the draft rules for one code. Jammu and Kashmir is the only state that has finalized its rules so far.
The Labor Ministry had planned to implement the four labor codes, on labor relations, wages, social security and occupational health and working conditions, starting April 1.
The ministry has also finalized the rules under the four codes. Government sources said there is still no clarity on when the codes can be implemented, as it now depends on at least some major states joining in.
Postponing implementation of the wage code, which is among the four new laws awaiting enforcement, will give companies temporary breathing space from making changes to employees’ take-home wages or provident fund obligations. . The new code limits allowances to 50% of an employee’s basic income and establishes a contribution to the provident fund as a prescribed proportion of 50% of gross salary. The new law, experts said, is expected to increase employee costs for companies.

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