Overhaul may push up costs for small companies

The notification of the four Labour Codes is one of the biggest overhauls of labour regulation in independent India, but for smaller companies it is likely to lead to higher costs. A lot will depend on the final guidelines and how the State governments implement them. By merging 29 different laws into a single framework on wages, social security, industrial relations and workplace safety, the government has tried to bring uniformity and reduce the confusion that employees and companies often face. Sajai Singh, Partner, JSA Advocates and Solicitors, said on paper, India is creating a future-ready workforce by cherry picking 30 odd labour and employment statutes into four labour codes. Allowing women to work in night shifts in various Sectors and recognition of gig workers and their rights stand out as progressive moves, that recognises the times we live and work in, he added. Minu Dwivedi, Partner, JSA Advocates & Solicitors, said these labour laws were originally formulated for the manufacturing sector as it existed several decades ago and did not fully cater to the needs of the services Sector as well as today’s manufacturing sector. There was an emerging need to address issues related to professional/ freelance (gig) services, technology enablement and new ways of working, he said. Preetha S, Partner, JSA Advocates & Solicitors, said for proactive employers, this is an unparalleled opportunity to transcend traditional adherence and proactively architect a future-ready, resilient workforce strategy that aligns with both statutory mandates and commercial objectives. While the sheer scale of labour codes might appear daunting, she said this is a defining moment for Indian businesses to recalibrate and undertake a comprehensive review and overhaul of their internal HR policies, employment contracts and compliance frameworks. Read more