New Delhi: Four Codes of Manpower cannot be implemented this fiscal considering slow progress in the preparation of rules by the state and also for political reasons such as election in Uttar Pradesh, a source said.
The implementation of this law assumes the significance because so this is implemented there will be a decrease in payment of employees who take home and the company must bear the obligation of higher administration funds.
“The Ministry of Manpower is ready with rules under four labor codes.
But countries have been slow in preparing and completing them under a new code.
In addition, the government is not interested in implementing the four code for political reasons, namely mainly selection in Uttar Pradesh ( Maturity on February 2022 and so on), “said the source.
The four code has been passed by parliament.
But for the implementation of these codes, the rules below must be notified by the central and state governments to enforce them in their respective jurisdictions.
“The possibility of implementation of four labor codes can be dragged outside this fiscal year,” the source said.
After the wage code it comes into force, there will be significant changes in the basic payment method and advanced funds of employees are calculated.
The Ministry of Manpower has imagined that the four code in industrial relations, wages, social security, and health safety conditions & health work from April 1, 2021.
The four business codes will rationalize 44 central employment laws.
The ministry has even completed rules under four codes.
But this cannot be implemented because many states are not in a position to notify the rules under these codes in their jurisdiction.
The labor is the same subject under the constitution of India and therefore both central and state must notify the rules under this four code to make their land law of their respective jurisdictions.
According to the source, several countries have worked on the draft rules on four labor codes.
These countries Uttar Pradesh, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka and Uttarakhand.
Under the new wage code, allowances are limited to 50 percent.
This means half of the gross payment of an employee will be a basic wage.
Providential fund contributions are calculated as a percentage of basic wages, which include basic payments and existence benefits.
The employers have divided wages into many benefits to maintain a low base wage to reduce funding funds and income tax outgo.
The new wage code provides provident fund contributions as a proportion determined by 50 percent of gross payments.
After the implementation of the new code, the payment of the employee who was taken home would decrease while the obligation of the Covident Fund The employer would increase in many cases.
After being applied, the employer must restructure the salaries of their employees according to the new code on the wage.
In addition, the new industrial relations code will also increase the ease of doing business by enabling the company up to 300 workers to continue for lay-off, savings and closure without government permission.
At present all companies with up to 100 employees are released from government permits for layers, savings and closures.