CHENNAI: The recently notified Labour Codes with provisions like mandatory release of salary by 7th of every month, equal pay for equal work and providing facility for women to work night shifts are set to have a far-reaching impact on the IT and IT-enabled services (ITES) sector.
Industry body NASSCOM and Pune-based Nascent IT Employees Senate (NITES) both have welcomed the notification. NITES called it one of the biggest overhauls of labour regulations in Independent India, while NASSCOM claimed that the new codes would modernize India’s labour framework.
NASSCOM in a statement issued on Saturday said for the technology industry and its workforce, the eventual full implementation of the Codes can bring greater predictability and transparency. “Provisions on written appointment letters, fixed term employment with parity of benefits, expanded coverage of social security, recognition of gig and platform work and specific attention to timely salary payments, equal pay and structured grievance mechanisms for IT and IT enabled services are particularly relevant to a skilled and mobile talent base,” it said.
It added that these changes can support workforce mobility, strengthen trust and enhance India’s attractiveness as a hub for high value technology and digital services.
The IT industry body further said that as rules are finalised, Nasscom will focus on supporting a smooth and practical transition for the industry. “A key priority will be to help ensure that the central framework under the Codes is harmonised with state level requirements, including shops and establishments laws, so that overlapping obligations and unintended compliance challenges do not arise,” it said.
NITES, which is an employee association, also stated that the implementation of these codes will also depend on states as they have to come up with finer rules.
“The success of these reforms depends on how states implement the finer rules, because actual compliance and enforcement happen at the state level. If the rules are not framed and enforced carefully, companies may restructure contracts to bypass obligations. Trade union rights also need to be preserved because without collective representation, employees in the technology sector may not be able to assert the protections promised to them,” said Harpreet Singh Saluja, president of NITES.