The passing of the recent labour reforms concludes the herculean attempt of the legislature in consolidating, amalgamating, updating, and rationalising several labour laws. These codes will likely be seen as one of the most important policy decisions of the current government with the potential to impact millions of organised and unorganised workers across the country while also ensuring that India has a competitive edge where industry and commerce is concerned. It is indeed walking a tightrope to balance two equally important and competing needs of industry and the workforce.
Greater Autonomy
In a move that will allow greater autonomy to employers, the threshold for requiring prior government approval for retrenchment and layoffs has been increased from 100 to 300 workers. Similarly, applicability of standing orders which govern the day-to-day functioning of an organisation has also been increased to establishments having 300 or more workers. Now employers have a free hand in having their own set of rules and regulations that would govern employer-employee conduct.
The new code also brings in the concept of a negotiating union which will simplify the process of collective bargaining for employers, who will now have to deal with a single union rather than having to deal with multiple trade unions. Presumably, this will result in swifter resolutions with the interests of the majority workers being represented by one entity. The new provisions prevent workers from going on strike without proper notice. These measures are likely to attract foreign investments by players who have refrained from setting up their presence in India owing to rigid labour laws and pugnacious trade unions.
Source: MoneyControl
