Will Our Politicians Allow Labour Reforms?


Posted by on February 4, 2017

One of the key reform measure of making India a better place for doing business, the Government of India has considering allowing companies of up to 300 employees to lay off without their employees without prior approval from the government.  The current limit for establishments employing up to 100 workers.

This budget the finance minister conveyed the government’s commitment to legislate the labour reforms by categorizing the 44 central labour laws into four codes – wages, industrial relations, social security & welfare, and safety & working conditions.

Labour reforms touted as the biggest ever reform initiative since independence is one of the key objectives of Narendra Modi Government. The code on wages is stuck in the Cabinet Secretariat so is the code on industrial relations. The remaining two codes are also in draft stage.

Once these are approved by the Cabinet the same are expected to be tabled in Parliament for consideration. Since the proposed rules prohibits politicians from becoming union leaders in the organized sectors, significant political opposition is anticipated.

The Finance minister is assuring that the reforms will be balanced to provide a fair playing field for both the employers and employees.

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