New labour codes are a win-win for workers and employers, Pg11

Key Highlights:

• The four new labour codes in India consolidate 29 laws, modernizing regulations and simplifying compliance for businesses.
• The Code on Wages (2019) establishes a uniform national framework for minimum wages, ensuring timely payments for all workers.
• The Code on Social Security (2020) expands social security benefits to include gig workers and platform workers.
• The Industrial Relations Code (2020) introduces flexibility in hiring and workforce management for medium-sized firms.
• The Occupational Safety, Health and Working Conditions Code (2020) consolidates safety regulations across sectors.

Detailed Insights:

• India's previous labour laws, such as the Industrial Disputes Act (IDA) of 1947, inadvertently discouraged firms from expanding due to regulatory burdens.
• The new codes aim to balance worker protection with economic dynamism by modernizing outdated provisions and expanding social protection to non-traditional workers.
• Simplified compliance through consolidated registrations, licenses, and returns reduces bureaucratic friction, especially benefiting small and medium enterprises (SMEs).
• The reforms intend to create a predictable, rules-based environment that encourages formal employment, raises productivity, and promotes investment in safer technology.
• States implementing labour reforms have historically benefited more from trade liberalization, indicating the positive impact of reduced bureaucratic hurdles and greater labour market flexibility.

Key Concepts Involved:

• Gig Workers: Individuals engaged in short-term or freelance work, often through digital platforms.
• Social Security: Government programs providing benefits to protect individuals against economic hardships.
• Labour Codes: Consolidated laws aimed at simplifying and modernizing labour regulations.