Parliamentary panel urges all states, UTs to implement labour reforms

A Parliamentary panel has asked the labour ministry to pursue states and Union Territories to prepare rules to enforce four codes on wages, industrial relations, social security, and occupational safety across the country at the earliest.

Parliamentary Standing Committee on Labour, Textile and Skill Development in its report tabled in Parliament on Monday noted that the central government and a number of states/UTs have pre-published rules under four Labour Codes.

The panel noted that labour is in the Concurrent List of the Constitution and under the Labour Codes, rules are required to be framed by the central government as well as by the state governments.

The committee noted that the four Labour Codes, which were notified in 2019/2020, are yet to be implemented. While most states/UTs have pre-published draft rules under these codes, a few states/UTs have not pre-published them.

As on December 3, 2024, three states -- Meghalaya, Nagaland, and West Bengal -- and one UT -- Lakshadweep -- have not yet pre-published the Rules on the Code on Wages, 2019.

Meghalaya, West Bengal, Andaman and Nicobar Islands, Lakshadweep and the NCT of Delhi have not pre-published the Rules on the Occupational Safety, Health and Working Conditions Code, 2020.

Similarly, Meghalaya, Nagaland, West Bengal, Lakshadweep, and the NCT of Delhi have not pre-published the Rules on the Industrial Relations Code, 2020.

Meghalaya, Tamil Nadu, West Bengal, Lakshadweep, and the NCT of Delhi have not pre-published the Rules on the Code on Social Security, 2020.

The panel has been apprised that the draft rules of all states and UTs will be ready soon.

Considering that for carrying out the provisions of the codes, it is a statutory obligation on the states/UTs to prepare the Rules, the Committee urged the ministry to further intensify their efforts and pursue the matter with all states/UTs to enforce the rules.

The panel also noted that the ELI (employees-linked incentive) Scheme has not been launched yet.

The committee has been apprised that the cabinet note has been submitted and the scheme is expected to be launched shortly, it stated.

The FY25 Union Budget has announced the Employment-Linked Incentive Scheme (ELI) to increase formalisation of workforce, stimulate job creation, and enhance employability.

The scheme, focuses on recognition of first-time employees and support to employees and employers.

The total estimated outlay for the scheme, proposed to be implemented during 2024-25 to 2030-31, is Rs 1.07 lakh crore and it consists of three parts with a registration period of two years.