What's Happening?
The Indian government has issued a notification to implement key provisions of the four Labour Codes, effective November 21. These codes consolidate 29 central labor laws, aiming to provide greater predictability,
transparency, and mobility for India's tech workforce. Nasscom, an industry body, highlights the relevance of provisions such as written appointment letters, fixed-term employment, expanded social security, and recognition of gig and platform work. The codes also address timely salary payments, equal pay, and structured grievance mechanisms, which are crucial for a skilled and mobile talent base. The Gazette notifications outline the provisions now in force, with other sections to be implemented through future notifications.
Why It's Important?
The implementation of the Labour Codes is expected to enhance India's attractiveness as a hub for high-value technology and digital services. By expanding social security and strengthening workplace safety, the codes aim to improve workforce mobility and trust. The changes include minimum wages for all workers, a national floor wage, mandatory free annual health check-ups, and stronger provisions for women's participation in work. The move towards single registration, licensing, and returns is designed to simplify compliance and make enforcement more consistent, benefiting both employers and employees in the tech industry.
What's Next?
Nasscom plans to support a smooth transition to the new framework, focusing on harmonizing the Central framework with state-level requirements to avoid compliance challenges. The industry body will work closely with the Ministry of Labour and Employment to provide guidance and encourage the use of technology-enabled compliance solutions. As the rules are finalized, Nasscom aims to ensure that the transition is practical and beneficial for the industry, promoting a modern labor ecosystem.
