InvestorQ : Can you tell me the major highlights of the latest 3 labour bills passed on Wednesday?
Sam Eswaran made post

Can you tell me the major highlights of the latest 3 labour bills passed on Wednesday?

Answer
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Moii Chavate answered.
1 month ago


Exactly 2 days after the Upper House passed bills pertaining to the Farm Bills 2020 and the Essential Commodities Act the government passed some key labour bills. In between, on Tuesday, the Upper House had also revamped the Banking Regulations Act.

The Rajya Sabha appears to be passing bills with a vengeance. On Wednesday, the government approved three labour codes which effectively subsumed 25 central labour laws. This put into action some labour market ideas that have been pending for many years.

The new labour code will essentially offer industries flexibility in doing business, hiring and firing and that has been the biggest demand for FDI flows. It will also make industrial strikes difficult. At the same time, this bill also focuses on gainful employment and widening the organized sector.

From the perspective of the trade unions, it will surely reduce their influence across India, which explains why most of the unions are not happy about. Labour leaders also call this equivalent to giving a virtual free hand to the corporates to hire and fire at will.

From the government perspective, this merger of 29 central laws into four codes reduces compliance hassles. The industry sees these changes as a big boost for ease of doing business and have pointed it could encourage FDI in a number of sectors.