Employers are well-advised to study and understand the changes that would be triggered by the codes. Organizations may also assess the impact of the changes brought about by the labour codes, on their existing employee costs and policies
The 4 labour codes being a concurrent subject, it is important for the states also to notify the relevant rules and regulations under the four labour codes. Over the last year, there has been significant progress on this front with many states issuing respective draft rules as listed out below
The Minister for Labour and Employment was recently quoted in news media as indicating that the Codes would be made effective in 2022. Clearly, it appears that the central government is keen to implement the labour codes soon and hence employers are well-advised to study and understand the changes that would be triggered by the codes. Organizations may also assess the impact of the changes brought about by the labor codes, on their existing employee costs and policies, so that they are prepared irrespective of the transition time available once the new codes come into effect. Employers may need to realign their salary structures and human resource-related policies to conform to the provisions of the code. Given the far-reaching impact of the codes, it is important that the industry is provided adequate time to implement the new rules.