As a part of major reforms, the Central Government has notified 3 new labour codes which replace a large number of different laws related to wages, social security, industrial relations and occupational safety and Health. The aim of these codes is to simplify and consolidate all labour laws and improve compliance and working conditions of the labour.

The move is well intentioned and aimed at aligning India’s labour ecosystem with global standards, ensuring social justice for all workers. However, we are notorious for having very strong legislation and very poor implementation and compliance.

Fear has already been expressed that the implementation of these codes will push up the cost of construction. The cost of construction in developed countries is much higher than those in developing countries Hence, increase in cost of construction should not be viewed as a negative fallout if it is accompanied by increase in wages and attendant prosperity.

Let us hope that this new thrust on implication and ease of compliance intended by the Government finds resonance with all segments of the industry and results in improvement in the working conditions of the labour and their productivity.