New Delhi, Apr 9 (KNN) Federation of Indian Micro and Small & Medium Enterprises (FISME) is gearing up to make representations to the new government after the upcoming general elections.

The key demands revolve around seeking a phased implementation of the recently passed labour codes and holding comprehensive stakeholder discussions before enforcing the reforms.

"We will request the new government to facilitate stakeholder discussions before implementing the labour codes. The last such discussions took place in 2021," said Rakesh Chhabra, Vice President, Federation of Indian Micro and Small & Medium Enterprises (FISME).

The labour codes in question include the Industrial Relations Code, Code on Social Security, Occupational Safety, Health and Working Conditions Code, and the Code on Wages, that were approved by Parliament in 2020 and 2019, respectively.

However, the rules necessary for their implementation have not been formulated and notified yet.

Chhabra explained, "The cost burden on MSMEs should not increase due to gratuity. Workers should be covered under the Rs 5 lakh Ayushman Bharat scheme for medical insurance without additional charges on MSMEs."

He added, "Switching to livelihood wages could raise the basic wage by 40 per cent, severely impacting labour-intensive MSMEs and straining their finances."

Amidst uncertainty surrounding the regulatory landscape and compliance requirements, MSMEs are hesitant to readily adopt the labour codes.

The ambiguity has created an environment of caution rather than confidence within the sector.

As a result, MSMEs are seeking a phased implementation approach and comprehensive stakeholder discussions to address their concerns before the new labour laws take effect.

(KNN Bureau)