Industry prefers phased roll out of Labour codes: KEA Survey

Industry prefers phased roll out of Labour codes: KEA Survey

Bengaluru (22june 2022): India is slowly edging towards a new era in labour and employment law. The new Labour Codes are aimed at simplification of the current labour laws and promoting digitisation, and thereby easing the burden of compliance for employers besides providing social security for all workforce. This is the crux of the findings of a Labour Code Survey Report by the Karnataka Employers’ Association and BCP Associates, which was unveiled by Mr. Pratik Kumar, CEO Wipro Infrastructure Engineering & Executive Director – Wipro Enterprises, here today. Over 133 companies spread across Karnataka, many of them with national operations, participated in the survey.

Delivering the keynote address, Mr. Pratik Kumar said, “The changes that the four codes are expected to bring about have been long overdue and it has been an industry ‘ask’. The codes aim to enhance social security of the workforce and guide implementation of labour law compliance. The codes will cut down on significant systemic complexities and help accelerate economic growth. On their part, organizations need to revisit their HR policies and relook at their employee compensation structure. They have to conduct their own impact analysis and critically look at their own compliance practices”

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A high-level panel discussion on the proposed labour codes followed the launch of the Survey Report. Dr. Manjunath Gangadhara, Additional Labour Commissioner (Industrial Relations & Child Labour), Government of Karnataka, Mr. B.C. Prabhakar, Advocate, Chairman – BCP Associates and President, Karnataka Employers’ Association (KEA) and Mr. Madhu Damodaran, Group Legal Head, Quess Corp were the panellists. The discussion was moderated by Ms. Pooja Prabhakar, Managing Partner, BCP Associates and Vice President, KEA.

Expressing his views on the new Labour Codes, Dr. Manjunath said, “The Labour Code Survey Reports by KEA and BCP Associates provides provisional insight and adequacy of preparedness among the industries with regard to implementation of 4 Labour Codes. Their perceptions and probable impact analysis, gives an idea regarding amendments and other policy prescriptions that governments may undertake in immediate future.”

Mr. BC Prabhakar, Advocate – President KEA & Chairman, BCP Associates, and an authority on Labour Laws in India said, “The Survey indicates Corporate India’s clear understanding of, and readiness to implement, the New Labour Codes. The Codes focus on digitization and simplification to enable ease of doing business. I trust this will act as an accelerator for the Government to implement the Codes without any delay.”

Mr. Damodaran said “With the Labour Codes, it is once in a lifetime change for all stakeholders. Survey results involving 700 employers is interesting. Pleased that more than 57% of participants are ready. Though concerning that 43% is not prepared. High time stakeholders ready themselves for the impending change quickly.”

The survey report showcases several insights which help us understand India Inc’s preparedness for the implementation of the proposed Labour Codes.

Some key highlights of the Labour Code Survey Report:

  • Steps taken towards implementation of the Codes by companies range from 34.9% of companies in a high state of proactiveness to 18.6% of companies who have not initiated any action thus far;
  • 67% of the industry prefer a phased roll-out of the Codes, rather than all at once, for better preparation and ease of implementation;
  • 83% of the industry clearly understands that the Codes have an all-encompassing implication on the entire employee lifecycle, as opposed to the general perception that the Codes only entail changes to wages.

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