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Understanding the new labour codes -Zia Haq

-Hindustan Times

The Industrial Relations Code, 2020, bring new rules for hiring and firing of labour in mid-sized and large industries, making retrenchment easier.

Parliament on Wednesday passed the three labour code bills – the Occupational Safety, Health And Working Conditions Code, 2020; the Industrial Relations Code, 2020; and the Code on Social Security, 2020 – merging 24 central labour laws in a major boost to labour reforms. The National Democratic Alliance government has now merged 29 central laws into four codes. In August 2019, Parliament had passed the first of the codes, the Wage Code.

The Industrial Relations Code, 2020, bring new rules for hiring and firing of labour in mid-sized and large industries, making retrenchment easier. This effectively brings the “north American hire-and-fire model to the Indian hinterland economy in the hope that businesses recoup and add more jobs on a net basis,” said labour economist KR Shyam of XLRI, Jamshedpur.

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