In news:

Indian economy and businesses have been affected due to Covid-19 pandemic. In order to make an economic recovery, some states announced relaxing or doing away with major labour laws to attract investment.

What some states have done:

1. The Uttar Pradesh government has proposed an Ordinance exempting firms from almost all labour laws for the next three years.

2. The Gujarat government has announced that it will allow new companies setting up shops over the next 1,200 days to be exempt from major labour laws.

3. The Madhya Pradesh government has notified changes in labour laws to do away with the need to avail multiple licences for hiring contract workers and setting up factories.

Labour laws in India:

image 99

Are labour laws restrictive in India: 

image 100

Will relaxing labour laws generate employment:

What is needed:

Governmental effort:

The government has created four codes to rationalise the multiple laws. This has not been approved by the parliament yet.

  1. Codes on Wages
  2. Code on Industrial relations
  3. Code on Occupational safety, health and working conditions
  4. Code on Social Security and Welfare

What other govt’s are doing:

image 2022 08 17T122550.861

Source:”Indian Express “.


Examine whether Indian labour laws are restrictive. Can labour laws make labour welfare and economic development go hand in hand? Suggest measures in this regard.