5 Laws to Watch Out for in 2021

2020 caused quite a stir in the legal ecosystem of the country. The outbreak of the pandemic forced us to think out of the box and made us rethink and recalibrate our systems, processes and workflow management. 

While the legal industry witnessed a transformational shift at a predominantly infrastructure level, we would like to see the legal landscape changing in 2021 through visionary law-making. Having said that, let's begin the year with a deliberation of the most anticipated laws for 2021.

Labour code

The 40 odd central labour laws and 100 + state laws in India have made labour laws a complicated affair for years. For instance, companies are compelled to obtain multiple registrations and file multiple returns under the prevailing state labour laws. This is just one example, Over the years, some cosmetic changes were made through amendments but the maze of labour laws was laced with confusion, contradiction and redundancy. The archaic labour law regime required an overhaul since a long time. In fact, the recommendation to make sweeping changes in India’s labour laws dates back to 1999. Back then, The Ravindra Verma led national commission on labour reforms had suggested to consolidate and streamline the labour laws in India. However, labour reforms gained serious traction only in the latter part of the last decade. Simplification of labour laws was Modi Government’s key promise to India Inc for ease of doing business during the 2014 election campaign. 

The 4 labour codes will subsume 29 central labour laws. While the wage code was passed by the parliament in August 2019, the other three labour code bills – the Occupational Safety, Health And Working Conditions Code, 2020; the Industrial Relations Code, 2020; and the Code on Social Security, 2020 were cleared in September 2020. A general consensus is that the labour code has achieved a balance in safeguarding stakeholder interests. The industry experience with the new code is something to watch out for post April 1, 2021.

Personal Data Protection Bill

The justice KS Puttuswami Case not only reiterated the privacy as our fundamental right but also made way for the formation of a committee to recommend the first personal data protection law in India. Presently, The Information Technology Act, 2000 regulates limited aspects of data protection supplemented by Information Technology [Reasonable Security Practices And Procedures And Sensitive Personal Data Or Information] Rules, 2011.

As the Indian economy transitions into a predominantly digital one, the need for an adequate and standalone Act to recognize, classify and protect personal data can supplement and accelerate progress and innovation for digital India. On an infrastructure level, technology adoption is happening at an accelerated pace post the outbreak of the coronavirus. While Artificial Intelligence and emerging technology hold promise, the Facebook data breach fiasco in Cambridge- Analytica case highlights the potential risks associated with the growing pervasiveness of technology and social media in our lives.

The personal data protection bill is based on the simple premise that data must be collected and used fairly and responsibly. The bill brings more clarity around user consent and rights of users with respect to their data. It also lists out the duties and obligations of the authorities with respect to the collection and processing of user data. The bill also seeks to regulate the transfer of user information outside India.

The bill is most likely to become law in 2021. It will be interesting to see how India Inc responds to the potential increase in compliances and infrastructure costs that might accrue once the bill becomes a reality.

Laws around cryptocurrency

Cryptocurriencies have regained the interest of investors in India during the lockdown period. Supreme Court lifting the RBI ban on trading in cryptocurrencies has also lifted the investor sentiment with regard to trading in virtual currencies.

However, the Indian government has been sceptical of cryptocurrency trading. Virtual currencies invite legit concerns over security, tax evasion, money laundering. In fact, There have been numerous reports of cryptocurrency scams and terror financing which have resulted in a cautionary to negative approach of the Indian Government on this subject. However, the counter-argument holds some merit too. Allowing trade in cryptocurrencies will add another stream of revenue for the Indian economy. The bitcoin market has exhibited positive trends globally after the outbreak of the coronavirus.

The market players contend that regulations on virtual currencies will not only remove uncertainty but also secure and protect the investors against potential scams. Intermediaries seek recognition in the crypto trading ecosystem and have their eyes on Budget 2021. Will the Indian Government change its stand on cryptocurrencies? 2021 might have something in store for us on this front.

Farm Laws

2021 is a crucial year for the agrarian sector of the Indian economy. The three farm bills are seen as a progressive milestone for the farmers of India. The farm bills propose to remove inter-state trade barriers. It also eliminates intermediaries out of the equation and makes farmers’ self-sufficient. The farming community will be able to exercise better bargaining power for their agricultural produce and can enter into contracts stakeholders outside the mandi system like retailers and agribusiness firms.

While farmers perceive the new regulations as a threat to the secure network of the mandi system, inadequate provisions on minimum support price have led to controversies and mass protests. A large section of the farmer community believe that lack of MSP provisions tilts the balance in favour of large retailers, experts assert that farmers stand to gain if they negotiate effectively on the basis of the market price.

The effectiveness of the Government in dealing with the concerns of the farmers and consequently green lighting the farm bills is something to watch out for in the coming months.

Assisted Reproductive Technology Regulation Bill 2020

Law on Assisted Reproductive Technology seeks to protect women against exploitation in ART Banks and clinics. The said regulations will work in tandem with the surrogacy law in India. According to a report published in Times of India, a staggering 27.5 million couples face infertility in India. In such a scenario, a law addressing the concerns of infertile couples has been deliberated upon time and again. In fact, the said bill has been in the pipeline for 15 years. 

There is a growing requirement of regulations mandating the ethical framework for clinics and ARTs. The bill must also attempt to regulate the critical egg harvesting process. While the bill intends to make Pre-Genetic Implantation Testing mandatory for the benefit of the child born through ART, it must also provide such children with the right to know their parentage. Let’s hope that the bill finally sees the light of the day with an adequate legal framework keeping the sensitive interests of the stakeholders in mind.

Which is the most anticipated law for you. lets us know in the comment section.