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Punjab Latest to Effect Labour Reforms; ‘Race to the Bottom’ in Labour Standards, Says Expert -Ronak Chhabra

-Newsclick.in

Sundar believes this will result in the creation of “regional labour markets”, which will lead to “a race to reach the bottom of labour standards” among the states.

The Congress-led Punjab government will soon bring an ordinance and become the latest state to effect labour law reforms, including eased retrenchment norms in the state, in a move that can be seen as following in the BJP’s footsteps to jump ranks in ‘ease of doing business’.

Ahead of an investor’s summit held in Mohali in December 2019, the state’s cabinet had approved several amendments, including changes to key provisions under the Industrial Disputes Act, 1947, Factories Act, 1948 and Contract Labour (Regulation & Abolition) Act, 1970.

The draft bill has reportedly been given the President’s approval now, paving the way for its implementation in the state following the governor’s approval. It is because labour is a concurrent subject under the Constitution of India, allowing states to frame their own laws, but requiring the Centre’s approval.

An ordinance (to bring in the approved changes) is ready and has been sent to Punjab Governor V.P. Singh Badnore for his approval, and will be notified soon, a report by Hindi daily Jagran quoted V.K. Janjua, additional chief secretary, Punjab labour department, as saying.

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