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OSHWC Code Delivers A Mixed Bag Of Assurances

1 by rudswa
Regular contributor
The Indian Parliament's recent approval of three labour codes - the Industrial Relations (IR) Code, 2020; the Code on Occupational Safety, Health and Working Conditions (OSHWC), 2020; and the Code on Social Security (SS), 2020 - is expected to simplify the complex maze of existing labour laws, enable a more conducive business environment, and boost employment and economic activity. With the passage of these three codes (now bills), the government has demonstrated its seriousness to dispense with multiple and outdated laws which are not only incompatible with modern business environments but also give rise to inconsistencies and ambiguity.

On the one hand, the new labour codes are expected to bring about a higher level of regulatory compliance, give industries/businesses greater flexibility and simultaneously protect workers' rights and benefits. On the other, they are also being seen as enablers to boost India's ranking in the Ease of Doing Business index and attract higher inflows of foreign direct investment (FDI). The three new codes, along with the Code on Wages, 2019 (passed in August 2019), are the culmination of years of effort to streamline and consolidate over 100 state and 40 central labour laws regulating various aspects of labour.

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