India Unveils Landmark Labour Reforms to Boost Job Creation and Economic Growth
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In a historic move, the Indian government has implemented four labour codes aimed at revamping the country's employment landscape. The codes, which replace a complex web of 29 archaic laws, are expected to attract investment, spur job creation, and make it easier for businesses to hire and fire employees. Prime Minister Narendra Modi hailed the move as the 'biggest reform in the interest of workers since independence,' saying it will empower workers and boost 'Ease of Doing Business.' The codes introduce a national minimum wage, social-security benefits, and allow women to work night shifts. The new laws also define gig workers and provide a framework for social security benefits, including health check-ups, gratuity, and pension. Businesses can now employ workers for 8-12 hours a day, and states will have to fix a minimum wage that can't be lower than the federally fixed rate. Trade unions have voiced concerns that the changes will make industrial strikes more difficult and encourage a 'hire-and-fire' model. However, the government maintains that the codes strengthen workers' rights and create a more robust ecosystem for employment. The codes are expected to add approximately 2.8 million formal sector jobs annually, according to the World Bank. The government has notified the four laws and rules needed to make them operational, effective November 21. Industry experts and economists have welcomed the move, saying it is long overdue and necessary for India's economic growth. The codes are a significant step towards creating a more modern and competitive workforce, and are expected to have a positive impact on the country's economy.
