Blueprint to roll out 4 long-pending labour codes likely in FY27 Budget, sources say

In 2019-2020, a total of 29 labour-related acts were consolidated into four Labour Codes.

The government is likely to prepare a blueprint to roll-out of the long-pending four central labour codes, which may be unveiled in the upcoming Budget for FY27.

As part of efforts to finalise this blueprint, Labour Minister Mansukh Mandaviya and senior officials are expected to meet around 10 trade unions early on November 21 to discuss the implementation of the four central labour codes, two sources told Moneycontrol.

This crucial meeting comes a day after pre-Budget consultations between key trade unions and the finance ministry.

"The labour ministry is perhaps willing to discuss the execution of labour codes, to try and see if any concerns need to be addressed," one source said.

In 2019-2020, a total of 29 labour-related acts were consolidated into four comprehensive Labour Codes. The aim was to promote trade and investment, enhance ease of business, reduce compliance burden, support decriminalisation, address skill development, and improve dispute resolution mechanisms.

These are the Code on Wages, 2019, the Industrial Relations (IR) Code, 2020, the Code on Social Security (SS Code), 2020 and the Occupational Safety, Health and Working Conditions (OSH&WC) Code, 2020.

Though cleared by the parliament, the proposed labour codes have been pending since 2020.

Moneycontrol had reported earlier that despite delays at the central level in implementing the four labour codes, a majority of Indian states have moved ahead with key reforms in this area on their own.

From allowing women to work night shifts across sectors to expanding social security for gig workers, at least 26 states have carried out reforms to address industry demands and promote workforce inclusivity, according to official sources.

Additionally, Gujarat and Andhra Pradesh have amended the Factories Act to permit 12-hour shifts within a 48-hour weekly limit, providing greater flexibility to business.