The Labour Code on Industrial Relations Bill 2015: Tough times ahead for labour in India

Sharit Bhowmik

Headed by Prime Minister Narendra Modi, as of May 2014, the right-wing government has been in talks of increasing jobs by restricting workers’ rights. The government has categorically stated that, in the past, too much protection was given to workers in the formal sector. Subsequently, this is the main hurdle for expanding employment. If job protection is removed, job creation (it was argued) will peak when the employers have the power of hiring and firing. In keeping with its objectives, the government has decided to amend and amalgamate the existing laws that provide protection to labour. The Factories Act has been redefined to exclude all manufacturing units that employ less than 40 workers. In other words, nearly 75% of factories in the country will be exempted from regulating working conditions. Similarly four acts relating to wages and bonuses have been merged in one code. However the approval of parliament will be required before they become laws.