No more 'hire and fire' clause in Industrial Employment Act

No more 'hire and fire' clause in Industrial Employment Act

No more ‘hire and fire’ clause in Industrial Employment Act

The ‘hire and fire’ clause approved by the Union Government last year in the Industrial Employment (Standing Orders) Act might soon be abolished. It was introduced with the objective of promoting ease of doing business and reducing the role of middlemen.
As per a report by The New Indian Express, the Bharatiya Mazdoor Sangh
(BMS), an affiliate of the RSS, had put forth its objections regarding the clause to the Ministry of Labour and Employment. BMS leaders, who had also met BJP chief Amit Shah regarding these objections, said: “We were assured that changes in labour laws and reforms would be undertaken only after deliberating with trade unions. The BJP president also promised to strengthen mechanisms to settle issues.”
According to the ‘hire and fire’ clause, companies could sack up to 300
temporary/contractual employees with any notice or compensation. The
clause also stated that fixed-term employees (contract employees) will not be eligible for any statutory benefits that are available to permanent employees.
The report also quoted a Ministry of Labour and Employment official as
saying, “If we can put together all initiatives, including a possible change to
the number of people factories can hire or fire, the ministry will be successful in changing its image from anti-worker to pro-worker.”
Source: Money Control

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