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Reasons For Delayed Implementation of Labour Reforms In India

By - KSANDK on September 18, 2022

Delayed Implementation of Labour Reforms

The 7th Schedule of the Indian Constitution deals with the division of powers between the union and the state governments. The division of powers between the Union and the States is notified by three types of lists mentioned in the seventh schedule.

Under the Constitution of India, labour jurisdiction is a subject under the concurrent List where both central & state governments are authorised to enact legislation subject to certain matters being reserved for the centre.

It's a known fact that formulating any policy pertaining to any of the matters enlisted in the concurrent list takes time as all the states and centres should agree on implementation.

The Central Government has already prepublished the draft rules for all four codes. Now, states are required to frame regulations on their part. However, states are still in the process of firming up draft rules and few are yet to start the process of drafting rules.

The centre and states are required to notify rules under four codes to enforce these laws in their respective jurisdictions. Under the codes, the power to make rules has been entrusted to the central government, and state government and there is a requirement for the publication of rules in their official gazette for a period of 30 or 45 days for public consultation.

Delay in formulating rules by the states has created a legal vacuum and it has negated the purpose of coming up with labour reforms. A substantial part of establishments that is 3/4th is under the ambit of states, the Centre only deals with few establishments.

To ensure that there arises no delay the central government should take the opinion of the states before coming up with any policy matter mentioned in the concurrent list. Now, to fast-track the implementation of the labour codes the centre should try to persuade states to implement rules by conducting meetings and also provide them with technical knowledge if required for formulating rules and also provide with other resources for smooth implementation of the codes.

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