The government proposes to allow cos with no fewer than 300 workers to fire staff without their consent


New Delhi: The Ministry of Labor has increased the ceiling on the number of employees needed in a company to seek government approval before downsizing or closing the unit from 100 to 300, making it easier for large corporations to lay off employees or close establishments, in addition to granting powers to the state government to improve it according to its requirements.

In addition, the government has expressed its intention to provide universal social security while providing for the study of interstate migrant workers as part of changes to labor codes presented in Parliament on Saturday.

Labor and Employment Minister Santosh Gangwar introduced the Labor Relations Code, the Social Security Code and the Safety, Health and Labor Conditions Code at the Lok Sabha, paving the way for labor reforms in the country, amid of the opposition of Congress.

“We have included 174 out of 233 or 74% of the recommendations of the permanent labor committee in three codes that are being reintroduced as they have undergone substantial changes,” said Labor and Employment Minister Santosh Gangwar in Lok Sabha when presenting the three bills in the lower house on Saturday.

According to Minister Gangwar, even the preamble of the Social Security Code has undergone changes. Before presenting the new bills with substantial changes, the minister had withdrawn the three codes presented in Parliament in 2019.

“The government had held nine rounds of tripartite consultations while drafting the three codes,” added Minister Gangwar.

According to the new Draft Law of the Code of Industrial Relations, the provisions of this Chapter shall apply to an industrial establishment in which no less than three hundred workers, or a greater number of workers that can be notified by the appropriate government, were average employees per working day in the previous twelve months.

The codes will empower state governments over rules related to hiring, downsizing, and setting working hours in their factories and establishments, while restricting workers’ powers to form unions. In addition, it will ensure that the government extends social security to everyone, including unorganized workers and the self-employed gradually.

The Union Labor Ministry has consolidated and amalgamated 29 labor laws into four codes to significantly improve the ease of enforcement and hiring and firing workers while keeping labor welfare in mind. The government had previously notified the Wage Code that establishes a national minimum wage for all workers. However, the Code has not yet been implemented.

Congressman Manish Tewari opposed the introduction of the three labor codes, saying the Ministry of Labor should have consulted all stakeholders again before introducing the new bills, as they have undergone a “substantial transformation ”.

Even Shashi Tharoor raised objections to the introduction of new bills, saying the House should have been given two mandatory days to study the bills.

Labor Minister Gangwar, however, assured that the government will take into consideration the points raised during the discussion of the three bills in the Chamber.

The Occupational Safety, Health and Working Conditions Code (OSH and WC Code) and the Labor Relations Code (IR Code) will grant states autonomy to modify labor laws to meet their industrial needs and attract investment through labor reforms without requesting the Center’s permission.

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