Centre reviews workplace accountability standards after new labour codes

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Social accountability in the workplace refers to the responsibility of organizations to operate in a manner that considers the well-being of employees and wider stakeholders.

Summary

The study by the Bureau of Indian Standards will assess the relevance of the existing framework in light of recent policy and regulatory changes aimed at strengthening labour protections.

New Delhi: The government has initiated a study to review and revise India’s workplace social accountability standard, a move that could shape how companies structure compliance and governance practices as the country prepares to operationalise its new labour codes, said two government officials.

The Bureau of Indian Standards (BIS) has commissioned research to examine whether amendments are needed to its existing Social Accountability at the Workplace norms, which set out requirements for organisations to establish policies, procedures and practices related to ethical conduct and workers’ welfare, the officials said, speaking on the condition of anonymity.

The study will assess the relevance of the existing framework in light of recent policy and regulatory changes aimed at strengthening labour protections, the first of the two officials said.

Mint reviewed the terms of reference for the research and development (R&D) project. These include reforms relating to child labour, forced labour, anti-discrimination provisions, whistleblower protection, data privacy and workplace safety, this person said.

“Updating the workplace social accountability standard is important at a time when India’s labour regulations are undergoing major changes,” said Sumita Dawra, former labour secretary. “As the four labour codes aim to simplify compliance while strengthening worker protection, revising such standards can help organisations align their internal policies with evolving legal and ethical expectations at the workplace.”

Social accountability

Social accountability in the workplace refers to organisations' responsibility to operate in a manner that considers the well-being of employees and other stakeholders. It involves transparency, ethical practices and adherence to labour standards that go beyond basic legal compliance.

In response to a Mint query, Amit Kumar Singh, deputy director-marketing & consumer affairs, BIS, said the respective sectional committee reviews all published Indian standards every five years.

“The review [of IS 16001:2012] also aims to ensure that the standard remains relevant, contemporary and aligned with current national priorities and global best practices," Singh said. “The review will also take into account the R&D study conducted by BITS Pilani on ‘Study of Social Accountability at the Workplace’ to undertake a detailed study on the subject. It will also consider the upcoming implementation of the four labour codes, as well as regulations and policy developments introduced by the government.”

Indian businesses are preparing for the implementation of the country’s four labour codes — the Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — which consolidate and modernize nearly 29 labour laws governing wages, industrial relations, social security and workplace safety.

“The study will undertake a comprehensive review of existing literature, international standards, regulatory guidelines and organisational practices related to social accountability. The exercise will also examine best practices followed globally and assess how organisations in India are implementing workplace accountability measures,” said the second official.

It will include consultations with multiple stakeholders, including government bodies, public sector undertakings, private companies and other organisations. A structured survey will also be conducted to assess awareness of the standard, identify gaps in its implementation, and understand the challenges organisations face in adopting social accountability frameworks.

Under the plan, at least six organisations that have not implemented IS 16001 but may adopt it in the future will be visited. The survey findings are expected to support the revision and implementation of the standard. In addition, three stakeholders, including potential beneficiaries of social accountability, such as employees, contract workers, or representatives of worker groups, will be consulted to understand their requirements and concerns regarding workplace practices.

Visionary and timely

“The government’s initiative to review and revise the workplace social accountability standard is a visionary and timely step that will strengthen corporate governance and worker protections as the new labour codes become fully operational,” said Suchita Dutta, ED, Indian Staffing Federation. “By analysing how companies structure compliance, the study will bridge gaps between policy and practice, ensuring ethical workplaces that align with global benchmarks and drive inclusive growth.”

Employment rose from 47.5 crore in 2017-18 to 64.33 crore in 2023-24, adding a net 16.83 crore jobs in just six years. Unemployment fell sharply from 6.0% to 3.2%, while 1.56 crore women entered the formal workforce, she said.

“At this point, the government's initiative to reform workplace social accountability norms is both appropriate and essential," said Sonal Arora, country manager, GI Group Holding. "Stronger governance and more transparent compliance procedures will facilitate organizations' seamless transition as these labour rules approach full implementation, strengthening accountability, fairness, and trust in India's changing workplace."

Sandeep Gulati, managing director at ManpowerGroup India and the Middle East, said as India continues to strengthen its position as a global talent and business hub, “aligning workplace practices with evolving regulatory and governance frameworks will remain an important factor in supporting long-term, sustainable growth”.

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