The Seventh Schedule of our Indian Constitution defines division of powers and functions between Union Government and States Government.
It contains three list-
Union List- The Union Government or Parliament of India has exclusive power to legislate
States List-The respective state governments have exclusive power to legislate
Concurrent List- It includes the power to be considered by both the union and state government.

Labour codes are subject to Concurrent List and both Union Government and States Government have power to frame code rules. When Union Government passes any labour code, State Government have Constitutional right to frame rules according to particular State requirement. This is only reason why labour laws vary from states to States.

Example- Union Government passed The Contract Labour (Regulation and Abolition) Act,1970 with applicability of 20 or more contract employees, but Haryana, Rajasthan, UP and Maharashtra have applicability of The Contract Labour (Regulation and Abolition) Act,1970 on 50 or more employees.

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