A trade and industry body has lauded the government’s latest move to improve India’s Labour Code and said that this will especially benefit MSMEs. “The codification will be highly beneficial for the MSMEs as they are constrained by a complicated regulatory environment and labour market rigidities, especially with no-fixed term employment clause to deploy workers as and when required,” DK Aggarwal, President, PHD Chamber of Commerce and Industry said in a statement. He added that the move will also help in enhancing the ease of doing business for MSMEs as the earlier laws limited their potential for employment generation.
You might also be interested to read: Cabinet Approves Code To Allow Fixed-term Employment
The Union Cabinet has approved the Labour Code on Industrial Relations 2019 which will allow employers to employ workers on fixed-term duration of any period like three months or six months. While the cabinet has retained the provision that a company has to seek government approval in a case it decides to retrench or lay off 100 workers, the company can change ‘’such number of employees’’ through notification. The government measures are expected to improve India’s ranking on the ease of doing business of the World Bank.
Source: Financial Express
