Temporary employment agencies aim to roll out rules for contract labour

Employment agencies have approached the Department of Labor for a rapid roll-out of the contract labor provisions under the Code on Occupational Safety, Health and Health. Terms of employment2020, saying it would significantly reduce workforce informalization and lead to better compliance and ease of doing business.

The Indian Personnel Federation (ISF), representing the staffing industry and private employment service providers, had held talks with top ministry officials seeking immediate notice of the provisions related to contract labor.

The central government is waiting for all states to enact rules for all four codes before notifying them.

The staffing industry fears that the rollout of the Codes could be delayed until April 2025 in view of several assembly elections and next year’s general election, leading to a significant delay in their implementation.

“India has brought high visibility and high interest from companies around the world during its G20 presidency,” said ISF director Suchita Dutta said, adding that to take advantage of the situation, labor laws needed to be simplified with more flexibility for businesses. The Contract Labor Act should be one of the first few provisions implemented to attract companies to set up operations Indiashe added.