An overview of Labour Codes that are going to implemented in 2022

An overview of Labour Codes that are going to implemented in 2022
By Simran Bhardwaj

Regulatory Compliance in organisations has been concealed under the wraps of
the fast pacing world. Compliance is the act of being aware of the rule, policy,
standard law, or regulations passed by a governing body and obeying it to stay
away from any legal troubles and penalties. This single word acts as an umbrella
term for the variety of laws ranging from labour, industrial wages, working hours to
environment and safety dispute resolution.
A common man’s mind is quite frequently crowded with questions regarding why
so many of these laws and legislations are required for a company. The answer is
simple. These laws and legislations safeguard the rights of the company, including
the owner and the employees. They protect so that people are not subjected to
exploitation.
The pandemic brought the whole economy to a standstill. This economic
shutdown changed business owners’ perspective towards compliance which had
become a forgotten term.
This unprecedented outbreak has forced companies and organisations to take
some drastic measures such as cutting wages and laying off people. Recent
studies have pointed out that around 40 million people in India, mainly in the
unorganised sector have lost their jobs. Concomitantly, organisations are steering
through the compliance challenge.
Monumental amendments in labour law have been made keeping in mind the
welfare of the industrious workers and giving a boost to economic growth.
Occupational Safety, Health and Working Conditions Code, 2020; Industrial
Relations Code, 2020: and Code on Social Security, 2020 have been created by
merging 25 Central Labour Laws. These new Labour Codes will universalise
minimum wages and timely payment of wages. It also prioritises the occupational
safety of the workers.
These new reforms have been introduced to restructure the scattered legal labour
law framework so that the economy can function smoothly. The safety of the
employees has been prioritised. The reforms safeguard the interest of the
employees, protecting them from exploitation in any form. The reforms shield other
parties involved in a business as well. The employers will have access to better
control to run things even in matters such as ‘hire and fire’. The reforms will create
an environment of tranquillity where there is no involvement of any third party.
The parties involved apart from the employees and employers will be justly
recompensed in their dealings and will feel content with the services provided to
them.
The code on wages assures that no one is discriminated against based on gender,
job roles and that they are awarded reasonable wages and eligible bonuses for the
work done in comparison with similar work done by another person elsewhere.
These reforms will strengthen and promote India’s ‘Ease of doing business’
credentials. The codes corroborate the personal and professional satisfaction of
employees and owners’ concerns on pay, safety, and social security.

Whenever a new law is introduced, or some amendments are made to the current
laws, the organisations often feel apprehensive because they now have to deal
with new changes and make modifications in their operations. They are
surrounded by confusion, which plays a crucial role in negatively affecting their
productivity. Teams within the organisation face technical challenges and are
sometimes even harassed by the authorities due to non-compliance.