Implementation of New Labour Codes will facilitate Ease of Doing Business
The implementation of New Labour Codes will facilitate Ease of Doing Business and spur investments and growth, said Mr Sunil Kumar Yadav, Chairman, FICCI Rajasthan Sub-committee on HR & Skills and Vice President, Honda Cars India Ltd. He further added that the new codes will also promote employment generation and the open new horizons for the informal sector, and will certainly help in reviving our economy. He was speaking at the Webinar on Demystifying the New Labour Codes organised by FICCI on the recent labour law reforms. The webinar was moderated by Mr Atul Sharma, Head, FICCI Rajasthan State Council.
The technical presentation on New Labour Codes was made by Ms Harsha Totuka, Partner, Chir Amrit Legal LLP during the webinar. She made a detailed presentation on how the New Labour Codes would impact employees, employers and the economy. She mentioned that the four broad codes on wages, industrial relations, social security and occupational safety, health & working conditions have already been notified and the Central Government has completed the process of consultation on draft rules. Being a concurrent subject, once the states are ready with the rules these will be implemented ushering us towards realising the goal of a 5 trillion dollar economy. Commenting on action points for businesses, she suggested that businesses should review existing CTC structures, HR policies, contracts, re-assess cash flows, identify gaps and assess compliance readiness.
Some of the major highlights of the New Labour Codes are:-
(i) Change in the definition of the wages which may result in increased gratuity, PF contribution etc. and thereby increasing the CTC and decreasing the take home;
(ii) One registration, one return;
(iii) Prohibition of flash strike;
(iv) Timeline for payment of wages;
(v) New compliances towards formalisation such as issuance of appointment letter,
(vi) Increase in threshold for standing order from 100 to 300.
Concluding the webinar, Mr N K Jain, Chairman, FICCI Rajasthan Sub-committee on MSMEs emphasized that labour policies and laws are the backbone of the world of work. They are instrumental is safeguarding the interests of employees, employers and creating a safe and conducive work environment, necessary for productivity, he added.