CITI hails new Labour Codes, seeks uniform rules across states

The Confederation of Indian Textile Industry (CITI) has welcomed the long-awaited reforms and implementation of the New Labour Codes.

Thanking the Prime Minister for the bold step of replacing 29 archaic labour laws with 4 unified labour codes, CITI said that this will reduce the redundancies in the earlier labour laws and help reducing informality in employment that was present due to the inflexibilities in the earlier labour laws.

“We hope that the rules would address the heterogeneity in the state laws, which, so far, has made it difficult for companies with divisions in multiple states to comply with different state laws,” Confederation of Indian Textile Industry (CITI) chairman Ashwin Chandran said, commenting on the Labour Codes issue.

The scale of growth visualised through PM Mitra parks and some of the other policy reforms need liberal employment rules. States with more industry-friendly provisions will attract more investment and jobs.

The industry looks forward to the addressal of overtime rates which have been significantly higher than the ILO norms so far.

“We also hope that the new Labour Codes will align well with India’s initiatives towards becoming a responsible business hub and adherence to the various reporting frameworks,” Chandran added.

Further simplification, reduction in compliance costs and more alignment with international labour norms and wage costs will augur well for the overall growth of both industry and organised employment and would result in reduced informalisation of the sector.

ALCHEMPro News Desk (HU)