New Delhi: The labour ministry has finalised two labour codes that will give flexibility to state governments on rules related to hiring, retrenchment and fixing work hours in factories and establishments while imposing curbs on workers to form unions.
The quick roll out of these two central legislations would allow industrial states to tweak their work-related rules and allow factories to continue production with minimum workers as labour shortage continues.
Sources told ET that the code on occupational safety, health and working conditions (OSH&WC Code) and the industrial relations code (IR Code) would give autonomy to states to amend labour laws to suit their industrial needs and attract investments through labour reforms.
This would pave the way for states to allow fixed-term employment across sectors, increase the threshold on contract workers for obtaining a licence, and increase work hours or enhance the upper limit for seeking Centre’s permission to retrench workers.
Source: The Economic Times