All 36 states and UTs to frame rules on Labour Codes by end of this fiscal year: Labour Ministry

The ministry of labour and employment is confident of bringing in all 36 state and union territories (UTs) in India on board by end of the current financial year on draft Rules across the four Labour Codes. This could pave the way for the smooth roll-out of Labour Codes, pending since 2020, later next year. “All 36 states and UTs are expected to complete harmonization and pre-publication of draft rules by 31st March 2025, including Delhi and West Bengal,” labour and employment secretary Sumita Dawra told ET.

“This has been possible following extensive consultations with states this year through six regional meetings to facilitate framing of Rules in their domain while ensuring that their Rules are aligned with the central Rules,” she added.

The Code on Wages was approved by the Parliament in 2019 while the Social Security Codes, the Industrial Relations Code and the Occupational Safety, Health & Working Conditions Code were approved in 2020. While the Centre had framed Rules under these Codes in time, it has been waiting for all states to firm up Rules in their domain to avoid any legal issues after the roll-out of the Codes.

According to the year-end review released by the ministry on Saturday, Nagaland pre-published draft Rules under Code on Social Security and the Occupational Safety, Health & Working Conditions Code during this period while Sikkim pre-published draft Rules under the Occupational Safety, Health & Working Conditions Code and Andaman & Nicobar Islands pre-published draft Rules under the Industrial Relations Code.

Further, the ministry said that it has identified four reforms in labour laws to be carried out in coming days including single registration, single return, firm-based common license with five years validity and change of role of inspector to inspector-cum-facilitator. “The above steps would act as a catalyst for ease of doing business (EODB) by reducing compliance burden,” it said.Besides, it will roll-out the Centralized Pension Payment System (CPPS) from January 2025, enabling pensioners of the Employees’ Pension Scheme (EPS) under the Employees’ Provident Fund Organisation (EPFO) to get pension from any bank, any branch, anywhere in India from The move is expected to benefit 7.7 million pensioners, it said.

According to the ministry’s statement, a dedicated committee, chaired by the Central Provident Fund Commissioner (CPFC) of the Employees’ Provident Fund Organisation (EPFO), has been constituted to come up with a framework for social security coverage to gig and platform workers.

“This committee, composed of representatives from platform aggregators, gig and platform worker associations, knowledge partners, and industry associations, is tasked with suggesting, among other things, a framework for providing social security and welfare benefits to gig and platform workers,” it added.