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Top policy makers have begun to discuss in a framework that will attract investors looking to move manufacturing to India, a senior government official told ET.
“This is necessary because multinational companies are looking at relocation from China to India prefer flexible central laws state laws for the uniformity of operations across different locations,” the official said.
BJP-ruled Uttar Pradesh, Madhya Pradesh and Gujarat have passed executive orders to exempt the new facilities of the majority of the labor standards. While all of them have allowed the companies to extend shift hours to 12 eight hours as part of the reforms, UNTIL revoked the decision after strong protests by the RSS-affiliated labour union Bharatiya Mazdoor Sangh.
Existing businesses in these countries are upset because do not receive the benefit of more easy regulation. Now have searched for a similar flexibility.
The ministry of labour initiated consultations with the interested parties soon after announcing the ₹20 lakh crore Covid-19 aid package to understand what that more was needed to attract investment, underscoring the importance of the initiative to the government.
The right of Ecosystems to Employers
“The industry has asked the government to create a right ecosystem for employers to grow, keeping in mind the well-being of workers,” said a person familiar with the deliberations on the matter.
The person said that the restriction of the exemption from the labour legislation only the new facilities, as proposed by some states, was not justified.
One of the proposals under consideration is the acceleration of the reform measures, said another official.
“The ordinance route should be adopted to promulgate the labour code,” the official said.
The labour code on wages has been notified by the government, although it has not been implemented yet.
Three other codes — in the labor relations, safety, health and working conditions and social security — are at different stages in the Parliament.
The four working codes, formed by subsuming as many as 44 labour laws, have been given powers of the state and central authorities to make changes to adapt to the requirements of the industry through a simple notification.
Fast-tracking these codes will also ensure the rapid implementation of universal social security for all workers, especially those in the informal sector.
Unorganised workers have been hit the hardest by the Covid-19 outbreak and the subsequent national security lockout that forced the companies to stop operations, leading to job losses and wage cuts.
To the left without any kind of income, many walked and cycled thousands of kilometres from their homes.
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