[India] New labour laws will change hiring and firing practices

On September 23, the last day of the monsoon session of parliament - which was cut short by the COVID-19 pandemic - three key labour bills were cleared with almost no opposition. The first major change within the legislation addresses the freedom employers will have to hire and fire workers. At present, any establishment with more than 100 workers needs government permission for any process of retrenchment. The threshold has now been increased to 300.

This reportedly means that industrial establishments with less than 300 workers do not need a standing order  - a guideline document which supersedes even the employment contract - when laying off or retrenching staff. According to MR Madhavan - president of Delhi-based think tank Centre for Policy Research (CPR) - the 2019 version of these bills did not propose increasing the limit to 300. Quartz India reports reactions to the speedy passage of the new bills and concerns about the sweeping changes they will bring.

On September 23, the last day of the monsoon session of parliament - which was cut short by the COVID-19 pandemic - three key labour bills were cleared with almost no opposition. The first major change within the legislation addresses the freedom employers will have to hire and fire workers. At present, any establishment with more than 100 workers needs government permission for any process of retrenchment. The threshold has now been increased to 300.

This reportedly means that industrial establishments with less than 300 workers do not need a standing order  - a guideline document which supersedes even the employment contract - when laying off or retrenching staff. According to MR Madhavan - president of Delhi-based think tank Centre for Policy Research (CPR) - the 2019 version of these bills did not propose increasing the limit to 300. Quartz India reports reactions to the speedy passage of the new bills and concerns about the sweeping changes they will bring.