Labour-related rules are currently being framed and will be republished soon, Minister of Labour and Employment Mansukh Mandaviya said on Wednesday, signalling that long-awaited clarity on India's new labour codes is finally on the way. The minister noted that once the rules are issued, most concerns around implementation and compliance raised by industry and labour groups will be resolved.
Mandaviya's comments come amid renewed calls from the Confederation of Indian Industry (CII) for state-wise consultations and clearer guidance on the labour codes, which were passed by Parliament but are yet to be fully enforced. The CII has urged the government to facilitate detailed discussions across states to ensure uniform interpretation and smooth rollout.
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Industry leaders have also requested structured tripartite dialogues involving representatives from labour unions, industry bodies, and the government. Such discussions, they argue, are essential to address practical challenges around wages, hiring, working hours, and social security under the new framework.
The Government of India brought about significant change in the labour laws by introducing some new codes to streamline the existing laws on Nov. 21.
The four codes that came into effect include — the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.
The new Labour Codes introduced new restrictions on how companies can engage contract workers, potentially disrupting established business models that have relied heavily on outsourced labour.
From technology companies to manufacturing units, most Indian employers have traditionally depended on staffing agencies and third-party vendors to varying degrees. Some businesses have built their entire operational framework around contract workers deployed by these agencies. However, the implementation of four new Labour Codes has introduced specific restrictions that would require establishments to reassess their existing arrangements.
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