India Inc hailed the proposed changes to labour laws, saying they would provide operational freedom to employers, although provisions related to universal social security and guaranteed minimum wages may substantially add to their cost of hiring.
The government introduced three separate labour codes – on industrial relations, occupational safety and health, and social security — in the Lok Sabha on Saturday, proposing significant changes to make them less rigid for industry, while strengthening the safety net of workers.
“The initiative of bringing transparency and accountability through codification of labour laws will bring ease of compliance to the industry and investment push for India,” said MS Unnikrishnan of CII’s national committee on industrial relations.
The Industrial Relations Code (IR Code, 2020) allows businesses with up to 300 workers to retrench and close establishments without government approval. The earlier limit was 100 employees, which means more businesses will have this freedom.
It also provides a legal framework for fixed-term employment and ease of firing of contract workers.
“The given operational freedom will facilitate the expansion of establishments and job creation across different sectors,” Unnikrishnan added.
Source: The Economic Times
