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India – Majority of formal jobs sector believe labour reform initiatives will boost industrialisation (LiveMint)

29 June 2021

At least 90% of India’s formal sector believe that the labour reform initiatives via the four broad labour codes are going to be helpful and push industrialisation, reports LiveMint citing a survey from staffing firm Genius Consulting. While the labour codes are yet to be introduced, over 90% of representatives of the companies surveyed said these reforms were long overdue and would bring about policy changes that would be beneficial in hindsight for both employees and establishments. On fixed-term employment under the new codes, companies widely agreed with the benefits and some 80% of them said the reform will have positive implications on the staffing industry. The labour codes while expressly giving consent to the use of fixed-term employment across sectors have also said that fixed-term employees should also be eligible to avail of all statutory benefits provided to permanent workers. It also suggests that compensation for fixed-term workers be paid within seven days of the wage period and transparency be maintained in all matters regarding wages.

When asked about their opinion on the implication of watered-down right to strike provisions, at least 60% of those surveyed said the new provision would be beneficial for establishments as the new code prohibits strikes and industrial lock-out without prior notice. On allowing women to work the night shift, over 90% of respondents agreed that flexibility would have a favourable impact on women labour force participation but the remaining 10% of respondents disagreed, stating that it would have very little effect on ‘improving safety and productivity’.