The four labour codes are unlikely to be implemented this fiscal in view of the slow progress in the drafting of rules by the states and also for political reasons such as the elections in Uttar Pradesh, a source said.

The implementation of these laws assumes significance because once these are implemented there would be reduction in the take-home pay of employees and firms have to bear higher provident fund liability.

“The ministry of labour is ready with the rules under the four labour codes. But the states have been slow in drafting and finalising those under the new codes. Besides, the government is not keen to implement the four codes due to political reasons, which are mainly the elections in Uttar Pradesh (due in February 2022 onwards),” the source said.

The four codes have been passed by Parliament. But for the implementation of these codes, rules under these must be notified by the central as well as the state governments for enforcing those in the respective jurisdictions.

“It is likely that the implementation of the labour codes may be dragged beyond this fiscal,” the source said.