No labour codes coming into effect from July 1

New Delhi: Amid wide speculations, the roll out of four labour codes on industrial dispute, social security, wage and occupational safety, is not coming into effect from July 1.

As per a senior government official, all the four labour codes would be rolled out after taking all stakeholders on board. However, the official affirmed that discussions and deliberations on the final structure are still on.

"The Union Labour ministry is doing a final round of consultations with states, industries and other stakeholders and it would be finalised very soon, but it's not to be rolled out from July 1 as it's been speculated by many," the official said.

However, concerned officials in the Ministry of Labour and Employment have stressed that there would be a formal announcement of rolling out of labour codes by the government whenever the ministry would find that it's ready for the launch.

Notably, India has consolidated 29 central labour laws into four codes on wages, social security, occupational health, and industrial relations. While Parliament approved the Code on Wages in August 2019, the other three were passed in September 2020, but none of them has yet been rolled out.

The labour codes are expected to introduce far-reaching changes with implications for employers and workers. They will offer greater flexibility in rolling out short-term work contracts, make hiring and firing flexible, and make industrial strikes harder.

There will be a new national wage floor that will benefit workers, while informal and gig workers will get a social security net. A change in the definition of wages may impact the take-home amount but will increase retirement savings — something that some entrepreneurs and employers oppose because it could increase their employee costs in the short term.

Among several other provisions, the wage code has underlined that a 48-hour work week will not change. But there may be some flexibility on work hours, which can stretch up to 12 hours a day if an employee and employer agree on a case-to-case basis. This has given rise to speculations that some sectors and job roles may go for a four-day work week but until the final rules are out and codes are rolled out, it will remain a conjecture.