Trilegal Partner Atul Gupta Says On Launch Of New Labour Codes In India
Trilegal’s Atul Gupta shares insights on India’s new Labour Codes and their impact on employment and HR compliance.
Trilegal Partner Atul Gupta Says on Launch of New Labour Codes in India
The leading law firm in India, Trilegal, has shared its perspective on the launch of the new Labour Codes, which have now replaced decades-old employment laws, many from the British era. The Codes have been in development for several years, and their enforcement begins immediately, marking a significant shift in India’s labour and employment landscape.
Atul Gupta, Partner – Labour and Employment, Trilegal, said:
“21 November is a date that has without much notice or warning, become a landmark date in the context of employment laws and labour relations in India. Decades old laws, many from the British era, have been replaced today with the Labour Codes, which have been in the making for several years. While a lot has already been written about the Codes, including their pros and cons, the reality of their implementation is now very real. Old laws stand repealed, and work will begin on the implementation of State level rules (that have been in draft form so far), as well as several schemes and benefits that the New Codes envisage. Unfortunately, with no grace period for implementation, organisations will need to take immediate cognisance of the substantive provisions of the Codes that have come into force today, even while they wait for Rules to be formalised. To the extent a new provision cannot be complied with without the accompanying Rules, the government has clarified that existing rules will apply during the transition.”
The Codes introduce several material changes with potential immediate impact, including,
- Updated definition of wages, affecting benefits such as gratuity
- Implementation of updated grievance redressal mechanisms
- Revised provisions related to union recognition and bargaining
- Introduction of new leave provisions
- New definition of contract labour and associated compliances
- Other significant reforms impacting day-to-day HR and employment practices
Organisations are strongly recommended to pause and assess any material employment related actions right now, and seek legal guidance, to ensure that they do not unwittingly fall afoul of these new codes. More clarity will certainly emerge in the ensuing weeks, including as State governments plan to align these new laws with their own state-level strategies and policies to retain and incentivise businesses. We anticipate there will be implementation of Rules and/or State level amendments that will come out in the foreseeable future, since labour laws remain a subject for concurrent state and central legislation under the Constitution. One must remember that state-level laws like the Shops Act have not been changed via these Codes, but how both will work in tandem will remain a matter of legal interpretation.
The remarks underline how the new Labour Codes are set to reshape employment compliance, HR practices, and industrial relations across India, making proactive legal and operational strategies essential for organisations.
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