Labour codes empower states to change laws

NEW DELHI: States will be able to introduce significant changes to their labour law framework, such as allowing retrenchment of workers, without a legislative amendment under the proposed labour codes.The Centre has rejected a key recommendation of the Parliamentary Standing Committee on Labour on this in its reports on the Code on Industrial Relations.Keen to push labour reforms, the Centre has decided to retain the provision in the proposed code that allows states to undertake such steps via a notification. The standing committee had said such powers should not be given to states.The move comes as a huge backing for labour reforms introduced by states including Gujarat, Madhya Pradesh and Uttar Pradesh.Top government officials told ET that the labour ministry would soon move cabinet notes seeking approval for the two labour codes — Industrial Relations (IR) and Occupational Safety.The labour ministry has already sent the revised drafts with changes to the law ministry for vetting.77582288Some of the amendments that may be moved when the revised Bills are taken up for passage include a clear definition of the 'appropriate authority' on occupational safety and removal of distinction between term employees and workers in the IR Code. The codes are likely to clearly define the areas and conditions in which fixed-term employment will be allowed.“The law ministry is vetting the two codes. Once it is done, we will move a cabinet note seeking approval of the government on the revised Bills which will incorporate some of the recommendations of the standing committee,” said one of the officials.Another government official said the proposed changes were minor and the basic structure and provisions of the two codes would remain unaltered.Once approved, the two codes will give powers to state governments to notify changes to the threshold needed for retrenchment of workers, hire fixed-term employees, weaken the negotiating power of trade unions while strengthening the health facilities for workers at the factory premises.

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