Over 85 per cent informal workers will have a safety net as they become part of the formal workforce, while principal employers will be safeguarded as the staffing companies share the responsibility along with them to ensure compliance

The labour Code on OSH, as per staffing industry sources, will bring the contract staffing companies as a stronger compliance partner to not only the principal employers but also to the government.

The staffing companies which will clear the qualifiers will be granted licence to operate by the appropriate Central or state government, which means they will be able to provide work continuity to their user companies for five years without administrative bottlenecks. However, they are of the view that the stringent safety laws may increase the overhead costs for principal employer as per the safety and health code, even as it is a well-recognised need.

Experts are of the view that principal employers across industries will be able to benefit from pre-licensed staffing companies, which will help bring ease of business and efficient management. The ambit will grow beyond the current limited space to benefit the SME and MSME industries, construction sector workers, manufacturing industry and goods and transportation sector among many others.

The grant of Central or state operated licence, will not only expedite the work but also increase the potential of protection for all stakeholders involved.

Over 85 per cent informal workers will have a safety net as they become part of the formal workforce, while principal employers will be safeguarded as the staffing companies share the responsibility along with them to ensure compliances; and the government will be able to route the subsidies to better managed activities, thus reducing their burden.

“To bring further employment push there are increased flexibility to employ contract workers in core activity. The added acknowledgement that contract workers required during seasonal spikes is a welcome change and has addressed the needed flexibility,” says Dutta.

“The comprehensive reforms promise to reset the entire regulatory framework to benefit millions of workers and provide enterprises with flexibility, transparency and clarity,” says Chandrajit Banerjee, director general of the Confederation of Indian Industry.

However, all trade unions, including the RSS-affiliated Bhartiya Mazdoor Sangh, have objected to sweeping powers given under the Codes to bureaucrats.