The four Labour Codes--Code on Wages, Code on Social Security, The Occupational Safety, Health and Working Conditions Code, and The Industrial Relations Code--are expected to bring in much awaited reforms to the country
MUMBAI: Around 50% companies in India are confident about their readiness to implement the new labour codes, according to the Industry Expectation Survey on New Labour Codes by Grant Thornton Bharat.
The survey tapped into a respondent pool of 4000-plus middle-to senior managers.
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The four Labour Codes, i.e. Code on Wages, Code on Social Security, The Occupational Safety, Health and Working Conditions Code (OSHWC), and The Industrial Relations Code are expected to bring in much awaited labour reforms to the country.
"The overall employee compensation costs are expected to rise and it is important for organizations to evaluate the financial impact areas such as ‘gratuity’, ‘leave encashment’, ‘statutory bonus’, etc. for better planning," said Akhil Chandna, associate partner, Grant Thornton Bharat.
With the objective of effective implementation, 43% organisations have started internal reviews, while 13% are waiting for the final announcement on implementation date. While 20% firms have on-boarded external consultants for better preparedness, 20% are yet to decide on implementation strategies.
Nearly 85% respondents agreed that a minimum transition period of up to six months should be allowed to implement various obligations and compliances applicable under codes. While 54% think these will achieve the objective of widening social security coverage to the unorganised sector, 29% disagree.
Nearly 55% respondents support the view that people with fixed minimum wage rate should be entitled to overtime payment; 29% say this entitlement should be reserved for people in non-managerial roles.