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The labour reforms passed by the central government in September 2020 might need further time to get implemented due to lackadaisical approach of the state governments in drafting rules to bring them into effect.
Earlier, the four labour codes were supposed to be executed from 1st April, 2021 onward but it was later postponed without being given any fixed deadline.
The four codes work on the concept of an appropriate government. On that note, the centre is the appropriate government for railways, ports, public sector undertakings etc.
However, the state governments are the appropriate government for a large part of the industry and the entire private sector.
Labour regulations need both clarity and uniformity
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Sabina Dewan
Reforms have broadly been initiated but our specific rules must suit the needs of a future economy
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Workers are often rightly identified as the lifeblood of any organization or industry. In parallel, a well protected, nurtured and skilled workforce attracts investment to a country, since this makes it easier to do business. These realities must have provided an impetus for last year’s regulatory reforms that merged 44 Indian labour laws into four labour codes. While the step drew both cheers and criticism, most parties may agree that these reforms were long overdue. Labour regulations in India are as sensitive a subject as they are complex and cumbersome.
Companies will not be allowed to increase workings hours beyond mandated 48-hour limit for week. They will also need to ensure employees get three days of consecutive holidays after that, says Labour secretary Apurva Chandra