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The Central government is planning to introduce a new Labour Bill in the upcoming session of the Parliament with an aim to help investors and accelerate growth.
The new labour legislation would merge the existing 44 labour laws under four specific categories which are (a)wages (b)social security (c)industrial safety and welfare and (d)industrial relations.
Labour is a subject in the concurrent list of the Constitution of India. Thus,both the centre and states can enact laws on labour matters.There are 44 central laws and more than 150 state laws on labour.
Labour reforms are needed as India’s growth rates in the 2000s are often derided as jobless growth since the service sector-led model has been capital rather than labour intensive.
Further,Nine out of ten Indians are employed in the informal sector where labour laws are rarely implemented.Government needs to make the labour laws modern so that it encourages employers to keep more workers in formal roles with social security benefits.
Recently,NSSO report showed that unemployment rate across the country stood at 6.1%, the highest since 1972-73.It also showed that joblessness was higher in urban India (7.8%) than in rural India (5.3%).
However,there is a stiff opposition from labour unions who alleges that Industries are already flouting labour regulations and any dilution of the existing laws will compromise employees welfare.
The labour Union believes that the government is insisting on changing labour laws without realizing that it is not a shortcut for job creation.
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