NASSCOM-Trilegal Discussion Paper on Streamlining Multi-State Labour Compliances and the Future of Work

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NASSCOM-Trilegal Discussion Paper on Streamlining Multi-State Labour Compliances and the Future of Work

Deepak Arora

@deepakarora

November 17, 2021

Public Policy

617

Dear Members,

As you are aware, labour laws in India are undergoing a change and the government is currently preparing to implement four new labour codes. While the focus of the new labour codes has been to streamline central labour laws, at a policy level, there has been limited deliberation on simplifying state-specific employment laws. Variations in employee-entitlements and employer-obligations under state-specific shops and establishments (S&E) laws have remained a challenge – particularly, for organizations with a multi-state presence in the tech industry.

These challenges are now likely to be amplified as the new labour codes have some provisions that overlap and/or contradict the entitlements under S&E laws. Given the significant overlap, an interesting question which has started to emerge and perhaps, needs to be examined is whether there is need to have state-specific S&E laws since the employers would anyway be obligated under the central laws (when they come into effect) to ensure compliance with those provisions.

This question is all the more important due to the fact that majority of the companies in the IT sector are also considering adopting hybrid working model, wherein an employee could be working from a state which could be a different from the place of employment. Therefore, a question may arise, under which law, the working conditions of such employees will get governed.

In order to deliberate further on these issues and the possible way forward to mitigate such challenges, NASSCOM in partnership with Trilegal is releasing the discussion paper titled ‘Streamlining Multi-State Labour Compliances and Future of Work’’ for the industry feedback. The paper-
Outlines the challenges faced by multi-state establishments with varying state labour laws,

Highlights impending issues in context of remote and hybrid working models,
Discusses various solutions for addressing the challenges, and
Seeks views from organizations on the challenges and the solutions discussed.

The discussion paper may be downloaded from here

We look forward to your feedback on the paper and request if you can email specific recommendations towards address the challenges highlighted in the paper or any other challenge that you are facing (or expect to face) on this topic to deepak@nasscom.in by December 31, 2021.

We look forward to your feedback.

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Deepak Arora

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