The growing pressure on the economy has led many Indian states to relax labour laws in their state. But now the government at centre is going a step further that will be in favour of companies, stated a Business Standard report.
As per the reports, the government is proposing to allow companies that hire less than 300 workers to not frame a statutory contract stating key employment terms.
By canning standing order, the classification of workmen will be missing; manner of intimation to workers about work and wage-related details; attendance, granting leaves, and any other matter will not be mandatory any more.
This will allow companies to retrench workers or shun employee demand at some level. This proposal will be a part of the Code on Industrial Relations, 2020 scheduled to be introduced by Labour and Employment Minister Santosh Kumar Gangwar in the Lok Sabha today.
India, which already has a large informal sector, this change in policy may encourage this to grow further.
