Salary reforms are required, but they must be implemented slowly: Staffing Body

According to the Indian Staffing Federation (ISF), the union government should introduce the labour reforms one at a time.

The four amended acts and regulations that make up the union government’s new labour law will take effect on July 1. However, despite the approaching deadline, India’s top staffing body has stated that the nation is not yet prepared to adopt such a significant labour reform all at once.

According to the Indian Staffing Federation (ISF), in order to enhance India’s employment and economic outlook, the union government should adopt the labour reforms one at a time, section by section, or in phases.

“Our appeal to the Union government is to implement the labour codes one by one or section-wise, rather than not moving at all. The roll-out of the codes in a phased manner will be a start and create the pathway for more codes and sections to be introduced,” said Lohit Bhatia, President, ISF, quoted as saying.

The abrupt application of all four rules at once may not be successful in achieving the ISF’s stated goal of revitalising foreign investment and India’s economic recovery. But while India Inc. has made the suggestion against hurried implementation, the premier group representing organised staffing companies in India has made the opposite statement.

Indian firms have requested that the new labour regulations be put into effect as soon as possible after consulting with the states. The research also stated that the ease of doing business and the formalisation of employment would greatly benefit firms.

“The codes ensure substantial reforms towards ease of doing business such as electronic submission, online responses, deemed approval, rationalisation of approvals, third-party testing and elimination of many clearances and hence should be urgently operationalised,” said R Mukundan, Chairman, CII National Committee on Industrial Relations.

“Implementation of the codes will be a win-win situation for all the stakeholders. We want the codes to see the light of the day at the earliest,” added Shishir Jaipuria, president of All India Organisation of Employers of the Federation of Indian Chambers of Commerce & Industry.

The four labour codes—wages, labour relations, social security, and occupational safety and health (OSH)—were approved by the parliament in September 2020. Work hours, income ranges, and PF contributions would all change as a result, among other things.