AP Chambers seeks MSME-friendly Labour Code implementation

Vijayawada: The Federation of Indian Chambers of Commerce and Industry (FICCI), in association with the Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) and the All-India Organisation of Employers (AIOE), organised a regional consultation on Labour Codes and Draft Rules here on Wednesday.

According to AP Chambers president Potluri Bhaskara Rao, senior officials of the Union ministry of labour and employment and state labour departments from across the southern region participated in the meet.

Officials from the Union ministry made detailed presentations on the objectives, key provisions and implementation framework of the four Labour Codes. These were followed by an extensive interactive session with industry representatives from various sectors across the southern States, focusing on implementation challenges and compliance preparedness.

AP Chambers president Bhaskara Rao described the Labour Codes as a landmark reform aimed at simplifying and rationalising labour compliance while safeguarding workers’ rights.

He stressed the need for operational clarity, harmonisation of rules across States and predictability in compliance requirements, especially for enterprises operating in multiple jurisdictions. He appreciated the consultative approach adopted by the ministry and reiterated industry’s commitment to work with the government for balanced implementation.

During the consultation, AP Chambers submitted a detailed representation to Ajoy Sharma outlining concerns and practical suggestions of MSMEs in Andhra Pradesh. The representation called for a phased, facilitative and MSME-sensitive implementation, citing financial stress on smaller enterprises due to high input costs, credit constraints and demand volatility.

Suggestions included easing the initial financial burden, providing a 2–3 year transition period, phased implementation based on enterprise size, greater employment flexibility, a trust-based digital compliance framework, and harmonisation of State rules under the vision of “One Nation, One Compliance.”

AP Chambers executive vice-president B Raja Sekhar, general secretary Subbarao Ravuri and several members participated actively.