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<p><strong>Labour laws</strong></p><p>In his televised address to the nation on May 12, Prime Minister Narendra Modi looked past arguably more pressing questions to focus our attention on the broad-sweep reforms he had in mind to reshape the Indian economy. A key area of reform, he told us, was labour. India&rsquo;s labour laws have often been seen as a big impediment to economic progress. An attempt was made last year to recodify them, but it&rsquo;s a work in progress and still mainly restricted to central laws.</p><p>Meanwhile, in an apparent attempt to resuscitate economic activity, and even in the face of a flight of labour from the country&rsquo;s big industrial cen&shy;tres, several states have announced their own industry-friendly tweaks to labour laws. The desperation among the state governments is evident. The Covid-19 pandemic has severely dented the capacity of scores of industrial units, which face closure if not allowed to restructure their wage bills. The legal rejig in laws, it is hoped, will give them the necessary stretch room to make adjustments and survive the crisis.</p><p>The most significant changes have been announced in BJP-ruled Uttar Pradesh, Madhya Pradesh and Gujarat, but states like Rajasthan and Punjab, where the opposition Congress is in power, have also tweaked their labour laws. UP has passed an ordinance exempting businesses from the purview of most labour laws for the next three years. Only the laws on construction workers, bonded labour, deployment of women and children and timely payment of salaries have not been touched. In Rajasthan, MP, Gujarat, Himachal Pradesh, Punjab, Odisha and Goa, work shifts in factories have been increased from eight hours to 12, with provisions for overtime.</p><div class="itemcenter"><amp-iframe height="62" title="" width="320" sandbox="allow-forms allow-scripts allow-same-origin allow-popups allow-top-navigation allow-top-navigation-by-user-activation" allowfullscreen src="https://ancillary-proxy.atarimworker.dev?url=https%3A%2F%2Fakm-img-a-in.tosshub.com%2Fsites%2Findiatoday%2Fbanner%2Fpreferred-source-new.html%3Fv%3D1.014%5Cu0026native%3D1" class="mrBt15 preferred-source-banner"> </amp-iframe></div></p><p>Other changes such as the freedom to fire labour at will in units that have less than 300 workers (this limit was set at 100 earlier) are clearly intended to woo investors. In sync with Modi&rsquo;s vision of a self-reliant India, the states are promoting the changes in labour laws as an attempt to emerge as alternative manufacturing hubs to China in a post-Covid world. &ldquo;Industrial reforms were long awaited. We plan to increase job opportunities by wooing investors to our state. This is the right time to amend rules to attract industries willing to shift to MP,&rdquo; said state chief minister Shivraj Singh Chouhan. UP&rsquo;s minister for MSME, investment and export promotion, Sidharth Nath Singh, says his state is geared up to attract Japanese investments moving out of China. This follo&shy;wed his video-link interaction last week with Japanese ambassador to India Satoshi Suzuki.</p><p>Some steps announced by the states target bureaucratic red tape. In MP, for instance, start-ups will no longer need to apply for renewals while factory licences will be renewed once in 10 years instead of annually. Registrations and licences will be issued within a day. In Gujarat, all industry approvals will be given online within 15 days. Delays in clearances are the bane of business, and cutting turnaround time will no doubt make them happy. &ldquo;Relaxations in labour laws, and states moving towards a friendly labour environment should go a long way in making foreign companies shift their factories from China to India,&rdquo; says D.K. Aggarwal, president, PHD Chamber of Commerce and Industry.</p><p>India has around 45 central labour laws and about 200 more formulated by states. Industry is wary of this labyrinth and has often made the case that these laws are both anti-labour and a disincentive to hiring more workers. There is some merit in that argument as even the formal sector, which by one estimate accounts for 18 per cent of the employed in India, is increasingly hiring workers without formal contracts. Many believe that revoking some of these outdated laws will allow industry to flourish, which, in turn, will encourage the creation of more jobs.</p><p>However, there is no empirical evidence to suggest that labour laws are the main obstacle to industrial growth or are encouraging informal labour arrangements. The Working Group of Experts of the Commission on the Legal Empowerment of the Poor, set up by the United Nations Development Programme (UNDP) in 2005, did not find conclusive evidence that rigid labour laws force companies to opt for informal employment. Several European countries, where labour regulations are significantly more liberal than elsewhere in the world, too, have witnessed massive informalisation of work in the past three decades. Back home, a 2017 study by the V.V. Giri National Labour Institute in four states, Rajasthan, UP, Andhra Pradesh and MP, found that amendments to labour laws did not necessarily attract big investments, boost industrialisation or create more jobs.</p><p>The move by several states to relax or altogether suspend labour laws has drawn criticism from trade unions, opposition parties and independent experts alike. &ldquo;These arbitrary actions by the states violate the minimum wage guarantee for labour, a right upheld by the Supreme Court,&rdquo; says Jeet Singh Mann, a labour law expert, who teaches at the National Law University, New Delhi. The Rashtriya Swayamsevak Sangh-affiliated Bharatiya Mazdoor Sangh (BMS), too, has taken a dim view of the changes. &ldquo;This is the worst time to amend labour laws. It will make workers more vulnerable to job losses at a time the country should be joining hands to rebuild their lives and the economy hit by COVID-19,&rdquo; said BMS president C.K. Saji Narayanan. The BMS, which claims the affiliation of over 6,000 labour unions, said it will urge the Centre to prevail upon the states to roll back their decisions. Labour being a concurrent subject under the Constitution, states can frame their own laws, but these need the Centre&rsquo;s approval.</p><div class="itgimage"><amp-img src="https://ancillary-proxy.atarimworker.dev?url=https%3A%2F%2Fakm-img-a-in.tosshub.com%2Findiatoday%2Fimages%2Fbodyeditor%2F202005%2FUpfront-1-3-May25-2_Mos-x1200.jpg%3F29XTu0ybGqySed6hHS5Oe29SIPOkihcI%3Fsize%3D750:*" alt="" height="1200" width="770" class="" layout="responsive"></amp-img>
<div class="body_caption">Illustration by Tanmoy Chakraborthy</div>
</div></p><p>Experts caution that the abolition of labour laws will create a hire-and-fire employment model and further encourage informalisation of the workforce. Job insecurity will push wages down, reducing consumption and, eventually, demand in the economy. &ldquo;This will slow down the economic recovery. Workers&rsquo; interest and the country&rsquo;s interest aren&rsquo;t two separate things,&rdquo; says Prof. Alakh N. Sharma, an eminent labour economist.</p><p>To mitigate the impact of COVID-19 and the lockdown on workers, several labour experts recommend that the government offer a stimulus to industry to support the wage burden and bring about comprehensive reforms in labour laws. Several countries have extended wage support to industry. India, too, has taken measures in that direction. Starting April, in businesses that employ less than 100 workers, those earning below Rs 15,000 per month are to receive 24 per cent of their monthly wages in their provident fund accounts for the next three months. Employees&rsquo; Provident Fund (EPF) regulations have been amended to allow account-holders to cite the pandemic as a reason and make a non-refundable withdrawal of 75 per cent of their corpus or three months of their wages, whichever is lower. The states can now use the building and construction workers&rsquo; welfare fund to provide relief to registered construction workers.</p><p>Sharma believes the states must now move beyond temporary suspension of labour laws and bring forth the long-awaited reforms to create a conducive environment for both workers and employers. Even the BJP, last month, submitted a report to the Union government, recommending a review of labour and land acquisition laws to woo investors. Late last year, the Modi government streamlined central laws into four codes, on industrial relations, wages, social security and occupational safety. Parliament has passed only one code, the Code on Wages, while the other three are still hanging fire. The COVID-19 pandemic now leaves no scope for delay as fragile firms need hand-holding from the government and freedom from the legal maze. That Modi, in his May 12 address, mentioned land and laws as the two other focal points of reforms comes as no surprise.</p><div id="tab-link-wrapper-plugin"><div class="authors__container"><div class="authors__by"><div class="authlable">Published By: </div><div class="authdetaisl">Iram Ara Ibrahim</div></div><div class="published__on"><div class="authlable">Published On: </div><div class="authdetaisl">May 17, 2020</div></div></div><div class="sendros">--- ENDS ---</div></div>

up-front

UP Front

<p><strong>Labour laws</strong></p><p>In his televised address to the nation on May 12, Prime Minister Narendra Modi looked past arguably more pressing questions to focus our attention on the broad-sweep reforms he had in mind to reshape the Indian economy. A key area of reform, he told us, was labour. India&rsquo;s labour laws have often been seen as a big impediment to economic progress. An attempt was made last year to recodify them, but it&rsquo;s a work in progress and still mainly restricted to central laws.</p><p>Meanwhile, in an apparent attempt to resuscitate economic activity, and even in the face of a flight of labour from the country&rsquo;s big industrial cen&shy;tres, several states have announced their own industry-friendly tweaks to labour laws. The desperation among the state governments is evident. The Covid-19 pandemic has severely dented the capacity of scores of industrial units, which face closure if not allowed to restructure their wage bills. The legal rejig in laws, it is hoped, will give them the necessary stretch room to make adjustments and survive the crisis.</p><p>The most significant changes have been announced in BJP-ruled Uttar Pradesh, Madhya Pradesh and Gujarat, but states like Rajasthan and Punjab, where the opposition Congress is in power, have also tweaked their labour laws. UP has passed an ordinance exempting businesses from the purview of most labour laws for the next three years. Only the laws on construction workers, bonded labour, deployment of women and children and timely payment of salaries have not been touched. In Rajasthan, MP, Gujarat, Himachal Pradesh, Punjab, Odisha and Goa, work shifts in factories have been increased from eight hours to 12, with provisions for overtime.</p><div class="itemcenter"><iframe scrolling="no" allowfullscreen="" frameborder="0" width="100%" height="62" awidth="320" aheight="62" amplayout="fixed" src="https://ancillary-proxy.atarimworker.dev?url=https%3A%2F%2Fakm-img-a-in.tosshub.com%2Fsites%2Findiatoday%2Fbanner%2Fpreferred-source-new.html%3Fv%3D1.014" class="preferred-source-banner" loading="lazy"></iframe></div><style>.preferred-source-banner{  margin-top: 10px; margin-bottom:10px;}</style></p><p>Other changes such as the freedom to fire labour at will in units that have less than 300 workers (this limit was set at 100 earlier) are clearly intended to woo investors. In sync with Modi&rsquo;s vision of a self-reliant India, the states are promoting the changes in labour laws as an attempt to emerge as alternative manufacturing hubs to China in a post-Covid world. &ldquo;Industrial reforms were long awaited. We plan to increase job opportunities by wooing investors to our state. This is the right time to amend rules to attract industries willing to shift to MP,&rdquo; said state chief minister Shivraj Singh Chouhan. UP&rsquo;s minister for MSME, investment and export promotion, Sidharth Nath Singh, says his state is geared up to attract Japanese investments moving out of China. This follo&shy;wed his video-link interaction last week with Japanese ambassador to India Satoshi Suzuki.</p><p>Some steps announced by the states target bureaucratic red tape. In MP, for instance, start-ups will no longer need to apply for renewals while factory licences will be renewed once in 10 years instead of annually. Registrations and licences will be issued within a day. In Gujarat, all industry approvals will be given online within 15 days. Delays in clearances are the bane of business, and cutting turnaround time will no doubt make them happy. &ldquo;Relaxations in labour laws, and states moving towards a friendly labour environment should go a long way in making foreign companies shift their factories from China to India,&rdquo; says D.K. Aggarwal, president, PHD Chamber of Commerce and Industry.</p><p>India has around 45 central labour laws and about 200 more formulated by states. Industry is wary of this labyrinth and has often made the case that these laws are both anti-labour and a disincentive to hiring more workers. There is some merit in that argument as even the formal sector, which by one estimate accounts for 18 per cent of the employed in India, is increasingly hiring workers without formal contracts. Many believe that revoking some of these outdated laws will allow industry to flourish, which, in turn, will encourage the creation of more jobs.</p><p>However, there is no empirical evidence to suggest that labour laws are the main obstacle to industrial growth or are encouraging informal labour arrangements. The Working Group of Experts of the Commission on the Legal Empowerment of the Poor, set up by the United Nations Development Programme (UNDP) in 2005, did not find conclusive evidence that rigid labour laws force companies to opt for informal employment. Several European countries, where labour regulations are significantly more liberal than elsewhere in the world, too, have witnessed massive informalisation of work in the past three decades. Back home, a 2017 study by the V.V. Giri National Labour Institute in four states, Rajasthan, UP, Andhra Pradesh and MP, found that amendments to labour laws did not necessarily attract big investments, boost industrialisation or create more jobs.</p><p>The move by several states to relax or altogether suspend labour laws has drawn criticism from trade unions, opposition parties and independent experts alike. &ldquo;These arbitrary actions by the states violate the minimum wage guarantee for labour, a right upheld by the Supreme Court,&rdquo; says Jeet Singh Mann, a labour law expert, who teaches at the National Law University, New Delhi. The Rashtriya Swayamsevak Sangh-affiliated Bharatiya Mazdoor Sangh (BMS), too, has taken a dim view of the changes. &ldquo;This is the worst time to amend labour laws. It will make workers more vulnerable to job losses at a time the country should be joining hands to rebuild their lives and the economy hit by COVID-19,&rdquo; said BMS president C.K. Saji Narayanan. The BMS, which claims the affiliation of over 6,000 labour unions, said it will urge the Centre to prevail upon the states to roll back their decisions. Labour being a concurrent subject under the Constitution, states can frame their own laws, but these need the Centre&rsquo;s approval.</p><div class="itgimage"><div class="itgimage"><img  height="1200"  title=""  width="770"  class="" alt="" src="https://ancillary-proxy.atarimworker.dev?url=https%3A%2F%2Fakm-img-a-in.tosshub.com%2Findiatoday%2Fimages%2Fbodyeditor%2F202005%2FUpfront-1-3-May25-2_Mos-x1200.jpg%3F29XTu0ybGqySed6hHS5Oe29SIPOkihcI%3Fsize%3D750:*" loading="lazy" /></div>
<div class="body_caption">Illustration by Tanmoy Chakraborthy</div>
</div></p><p>Experts caution that the abolition of labour laws will create a hire-and-fire employment model and further encourage informalisation of the workforce. Job insecurity will push wages down, reducing consumption and, eventually, demand in the economy. &ldquo;This will slow down the economic recovery. Workers&rsquo; interest and the country&rsquo;s interest aren&rsquo;t two separate things,&rdquo; says Prof. Alakh N. Sharma, an eminent labour economist.</p><p>To mitigate the impact of COVID-19 and the lockdown on workers, several labour experts recommend that the government offer a stimulus to industry to support the wage burden and bring about comprehensive reforms in labour laws. Several countries have extended wage support to industry. India, too, has taken measures in that direction. Starting April, in businesses that employ less than 100 workers, those earning below Rs 15,000 per month are to receive 24 per cent of their monthly wages in their provident fund accounts for the next three months. Employees&rsquo; Provident Fund (EPF) regulations have been amended to allow account-holders to cite the pandemic as a reason and make a non-refundable withdrawal of 75 per cent of their corpus or three months of their wages, whichever is lower. The states can now use the building and construction workers&rsquo; welfare fund to provide relief to registered construction workers.</p><p>Sharma believes the states must now move beyond temporary suspension of labour laws and bring forth the long-awaited reforms to create a conducive environment for both workers and employers. Even the BJP, last month, submitted a report to the Union government, recommending a review of labour and land acquisition laws to woo investors. Late last year, the Modi government streamlined central laws into four codes, on industrial relations, wages, social security and occupational safety. Parliament has passed only one code, the Code on Wages, while the other three are still hanging fire. The COVID-19 pandemic now leaves no scope for delay as fragile firms need hand-holding from the government and freedom from the legal maze. That Modi, in his May 12 address, mentioned land and laws as the two other focal points of reforms comes as no surprise.</p><div id="tab-link-wrapper-plugin"><div class="authors__container"><div class="authors__by"><div class="authlable">Published By: </div><div class="authdetaisl">Iram Ara Ibrahim</div></div><div class="published__on"><div class="authlable">Published On: </div><div class="authdetaisl">May 17, 2020</div></div></div><div class="sendros">--- ENDS ---</div></div>

India's labour laws have often been seen as a big impediment to economic progress.

India Today

India’s labour laws have often been seen as a big impediment to economic progress.

The future of labour - India Today

The future of labour

The EU-India FTA is not an immediate disruption to India’s domestic alcohol industry but a calibrated strategic shift that will gradually reshape competition, pushing domestic producers to evolve through premiumisation, enforcement-backed regulation, and long-term adaptability rather than relying on tariff protection.

Alcohol

A slow reset, not a shock: What the EU-India FTA means for liquor companies

Ahead of the Japan premiere of Animal, actor Ranbir Kapoor connected virtually with Japanese audiences. During a virtual interaction, he shared memories of his grandfather, legendary actor Raj Kapoor and expressed his hopes for the film's reception.

Ranbir Kapoor

Animal heads to Japan: Ranbir talks Raj Kapoor connection, plans visit with Raha

Indian American and wellness guru Deepak Chopra has broken silence on his name's mention in the Jeffrey Epstein files, saying he regrets the email exchanges and that those reflected a poor judgment in tone.

deepak chopra jeffrey epstein files sex offender regret apologise

Poor judgment: Deepak Chopra breaks silence on mention in Epstein files

Mass layoffs at The Washington Post signal a significant shift in the global media landscape, highlighting the steady decline of traditional newsroom employment and the rapid rise of freelance journalism, gig-based media work, and independent digital reporting as alternative career pathways for journalists.

When the newsroom lights dim, where do stories go?

WAPO layoffs are sparking concerns that journalism is moving toward a freelance-led, gig-based career model.

Are WAPO layoffs the beginning of the end for full-time newsroom roles?

A playful on-stage comment by Siddhant Chaturvedi at a film event has set tongues wagging. Here’s why everyone’s talking.

Siddhant Chaturvedi, Mrunal Thakur

Siddhant Chaturvedi jokes aap kisi aur ki dulhan hain at Mrunal Thakur

Play Time!

PM Modi

Bharat Taxi

Donald Trump

Mamata Banerjee

Lok Sabha

IND vs AFG LIVE Score

Parliament Budget Session

Rahul Gandhi

WPL 2026

Dhurandhar 2

T20 World Cup

Border 2

Here's the drone visuals of the massive traffic jam on the Mumbai-Pune Expressway, which has hit vehicular movement for over 24 hours after a gas tanker overturned in the hilly Khandala Ghat section.

drone

Watch: Drone visuals of massive 22-km traffic jam on Mumbai-Pune Expressway

Addressing the Lok Sabha, Union Commerce Minister Piyush Goyal said the government has successfully safeguarded sensitive sectors in US trade deal.  

Piyush Goyal: No Compromise On Farmers Interests In US Deal

India protected agriculture, dairy interests in US trade deal: Piyush Goyal

In this Special Report, India Today’s Mir Fareed provides exclusive details on a major counter-terror operation in Jammu and Kashmir’s Udhampur. Security forces, including the Army, Jammu Kashmir Police, and CRPF, successfully eliminated two Jaish-e-Mohammed terrorists who were hiding in a natural cave within a dense forested terrain. Mir Fareed noted, ‘Finally, their luck ran out as security forces used IEDs to blow up the entrance. And with that, they were eliminated.’ One of the deceased has been identified as a top commander, Abu Mavia. The operation involved sophisticated drone surveillance and sharpshooters to pin down the terrorists who had previously evaded capture. The report highlights the evolving tactics of security agencies in tackling infiltrators using the treacherous forest reaches of Jammu. The area is currently being sanitised as per standard operating procedures following the recovery of weapons.

Mir Fareed: Two Jaish Terrorists Killed In Udhampur Cave

2 Jaish terrorists killed as security forces blow up cave in Jammu and Kashmir

This news report covers the intense political confrontation in Parliament where Leader of the Opposition Rahul Gandhi reportedly called BJP leader Ravneet Singh Bittu a 'traitor'. The incident occurred near the Makar Dwar as suspended MPs were protesting. The transcript highlights that Bittu, once a close associate of Gandhi, was heckled by Congress members following the remark. Additionally, the bulletin features a statement regarding the suspension of eight Congress MPs for the remainder of the session due to 'unruly behaviour'. Dilip Saikia, who was in the chair during the ruckus, stated that the members violated parliamentary decorum and rules. The report notes that the Congress party views those who defect to the other side through a specific 'prism', leading to the sharp exchange. The drama unfolded as Priyanka Gandhi also met with the suspended legislators to discuss the adjournment of the House.

Rahul Gandhi Calls Bittu a Traitor in Parliament

Rahul Gandhi Calls Ravneet Singh Bittu a 'Traitor' outside Parliament

On this Special Report, the focus is on a tragic incident in Ghaziabad where three minor sisters, aged 12, 14, and 16, allegedly died by suicide by jumping from the ninth floor of a high-rise building. ACP Atul Kumar stated, 'Three girls jumped from the balcony of the ninth floor of flat number 907 in Bharat City and were declared dead upon arrival at the hospital.' A suicide note recovered from the scene read, 'Mummy Papa, we are sorry.' Police have seized mobile phones and gadgets for forensic examination to determine if specific gaming tasks triggered the extreme step. The incident occurred around 2:30 AM, and authorities are recording statements from family and neighbors to uncover the exact cause behind this triple suicide horror.

Atul Kumar: 3 Sisters Jump To Death In Ghaziabad

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The future of labour

India's labour laws have often been seen as a big impediment to economic progress.

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