On July 21, the Ministry of Labour & Employment finalised two labour codes, which offer state governments the flexibility while hiring, retrenching and fixing working hours in factories and establishments while imposing curbs on workers to form unions, The Economic Times reported.
The speedy push given to these reforms would give industrial states the leeway to adjust their work-related rules, the report said, adding that it allows factories to continue production with minimum workers as labour shortage continues.
The code on occupational safety, health and working conditions (OSH&WC Code) and the industrial relations code (IR Code) would give states the power to amend labour laws as per their industrial needs and attract investment through labour reforms, sources told the paper.
Moneycontrol couldn’t independently verify the report.
This amendment would allow fixed-term employment across sectors as well as increase the threshold on contract workers for obtaining a licence. It would also allow industries to increase work hours or enhance the upper limit for seeking Centre’s permission to retrench workers, the report said, adding that this flexibility would allow them to hire labour as required.
According to the report, states would also be able to do-away with bonuses for workers. This is because the two codes give powers to 'appropriate authority' to make amendments to Central laws through simple notifications.
An senior government official told the paper, “The bills will be tabled in the upcoming Parliament session in August.” He added that the last code (in all four codes) on social security is pending with the standing committee on labour and does not know if it will be tabled in the upcoming sessions of Parliament.
The parliamentary standing committee on labour is currently finalising its recommendations on the social security code and is likely to submit them by July-end, the report stated.
Suchita Dutta, Executive Director of Indian Staffing Federation, told the paper that the two new laws will give consumer-driven sectors legal protection when it needs to ramp-up production for the festive season.
KR Shyam, a labour expert, is apprehensive about the new codes plugging loopholes left behind by the old codes. He told the paper that the government should review the two codes in the light of COVID-19 pandemic as these codes in the present form will not help maximise labour welfare and help economic growth.
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