Labour Law Reforms Stumble Amid Implementation Challenges

 The central government has repeatedly missed deadlines for implementing the four labour codes passed by Parliament in 2019-20, largely due to delays in aligning state governments with the changes.
As per the Constitution, labour laws fall under the concurrent list, meaning both the Centre and states have authority over labour regulations. The new codes consolidate and streamline 29 existing labour laws, many of which date back to colonial times.
These reforms aim to boost investment by simplifying hiring and firing processes for businesses while ensuring enhanced social security benefits for workers. The four labour codes include:
•    Occupational Safety, Health and Working Conditions (OSH) Code, 2020

•    Code on Social Security, 2020
•    Industrial Relations Code, 2020

•    Code on Wages, 2020
While intended to reduce bureaucratic hurdles blamed for stifling job creation, the reforms have sparked controversy. At least ten labour unions oppose provisions that modify retrenchment rules, further delaying implementation.
A key change in the new laws permits firms employing up to 300 workers to terminate staff without prior government approval—an increase from the previous limit of 100 employees.
For the codes to take effect, states must publish draft rules to ensure compliance with federal laws. However, opposition-led states such as West Bengal and Kerala have resisted certain provisions, arguing they do not align with regional conditions.
On January 29, Union Labour Minister Mansukh Mandaviya met with representatives from all 36 states and union territories during a two-day conference to resolve pending issues before implementing the codes. The Centre had also conducted six regional meetings to help states

harmonize their laws with the new framework.
"Given India's diversity, some variations in implementation are expected, but the rules should maintain broad uniformity for effectiveness," an official stated.

The Code on Social Security consolidates nine existing laws, including:
•    Employees’ Provident Fund & Miscellaneous Provisions Act
•    Employees’ State Insurance Act
•    Employees’ Compensation Act
•    Employment Exchanges (Compulsory Notification of Vacancies) Act
•    Maternity Benefit Act
•    Payment of Gratuity Act
•    Cine Workers Welfare Fund Act
•    Building and Other Construction Workers Welfare Cess Act
•    Unorganized Workers’ Social Security Act
As discussions continue, stakeholders remain divided on the impact of these changes, with concerns over worker rights and employer flexibility at the forefront of debates.