The politics of delaying the implementation of new labor laws is detrimental to the economy

- To avoid the complex labor laws and the arbitrariness of employee unions, business owners prefer to form small and scattered units.

According to a report in Ta Jetar, four new labor laws in the country are unlikely to be implemented in the current financial year. Delays in the formulation of rules by the states and the possibility of this delay have been expressed due to political reasons such as elections. The new law could lead to a reduction in the amount of salaries in the hands of employees and employers will have to provide more liability under the provident fund. At present, companies have to contribute less to the provident fund so they keep the basic pay level of the employees low. And fixes the overall pay scale with the remaining allowances. While in the new law, the contribution of provident fund will have to be given not only as basic pay but also as gross salary. With the implementation of the new laws, the pay structure will have to be redesigned. The new law will see a significant shift in the way employees' basic pay and provident funds are calculated, but the big question is when. According to the original plan, the new laws were to come into force from April 1 this year. These four labor codes are based on industrial relations, wage standards, social security, and health safety in the workplace and workplace conditions.

The Ministry of Labor has already drafted the rules under the four labor codes, but the states are slow to formulate the remaining rules to be drafted under these codes. Four new labor laws have been passed in Parliament, but the Center and the states have to be notified separately to implement them in their respective territories.

Although the country's complex labor laws have not hindered the pace of economic growth, they remain a headache for industrialists and investors. Of the 12 laws regulating economic activity, about 5 per cent apply to employees.

According to the Constitution of India, labor is a joint subject of the States and the Center and therefore it is necessary to prepare the rules of the Center as well as the States, which have to be enforced in the area of ​​their jurisdiction. Fifty per cent of the duty standards applicable to industries are employee reference. Less than ten per cent of the total workforce in the country is engaged in the organized sector. The states, along with the Center, are now ready to clean up the impractical labor laws that have been enacted by both the Center and the states on their own, but their serious implementation lacks the expected enthusiasm from the states.

India's Ease of Doing Business ranking has improved in recent years, but the country has not seen a drop in private or foreign investment. The Centre's proposed new simplified labor laws will create a favorable situation but will depend on how clear and practical it will be by the states.

The existing 9 labor laws of the Center have 16 sections and under it the 4 duties and 12 filings have to be included in each of the four new Labor Codes and its sections have been reduced to 20. હેઠળ Companies will have to maintain one or two registers under the Social Security Code, which has been compiled by law, which is currently up to twenty. If the new labor law is to be implemented in the true sense, the state governments will have to ensure that the original purpose of the law is not washed away in the state level rules.

In order for companies to be able to operate easily, there must be as much consistency between different states as there is in the rules under the new labor laws. Due to the labor laws of various states and the laws of the center, it remains difficult for industries to work.

India's labor laws, which are incompatible with the old and current industrial environment, are lagging behind the country today in a relatively small nation like Bangladesh, especially in the field of garments and mobile phone manufacturing. In Bangladesh, government policy is liberal in terms of number of employees, so companies can retain large numbers of workers in one place, making it possible for the company to keep the cost of production low.

The Modi government had prepared detailed proposals to change the country's complex labor laws and considered dropping several of the eight central labor laws in force in the country. The old complex laws have been repealed and laws have been drafted to suit the present times and their implementation is being delayed even though it has become law. In India, to avoid the complex labor laws and the arbitrariness of employee unions, business owners prefer to form small and scattered units. If this problem is to be solved in the industries, then the implementation of labor laws has to be expedited. Considering the different political conditions of the states in the country, it would be an exaggeration to expect unity in labor laws as, in addition to industrial competition between states, industrial workers have a large votebank in the states. Not only that, when the owners are also close to the politicians, in such a situation, the expectation that the states will show haste in drafting new rules would be considered excessive.