Mr Sudish Sharma, Executive Partner, Lakshmikumaran & Sridharan Attorneys Shares a Quick Byte on the New Labour Codes: Top 5 Changes That Will Impact Employers And Employees

“The Government is constantly making efforts towards ease of doing business and the labour codes are another step in this direction and a welcome one. The labour codes provide for fixed-term employment which will generate employment with better provisions such as payment of applicable gratuity and at same time impart flexibility to industry, introduction of concept of “Negotiating Trade Union” or “Negotiating Trade Councils which will assist the employees to voice their concerns and the industry dealing with a single trade union or trade council for negotiation which may lead to speedy resolution, making necessary changes in wage structure so as to bring uniformity as well as capping the exclusions and increasing the social security net for employees. Bearing in mind the requirements, the threshold for layoff and retrenchment provisions has been appropriately increased. The rules as well as the manner in which implementation is done, will be equally important. The codes strive to achieve a balancing act to protect the interests of both employers and employees and to encourage investments in India.”