Panel to assess Centre's poposals on labour reforms

The Centre on Wednesday set up a panel, comprising labour, industry, government representatives, to give  it suggestions on proposed labour reforms, which include allowing companies with 300 workers to lay them off without seeking government's sanction. Currently, industries with up to 100 workers were allowed to do this.

A source said the panel has been asked to give  its  report within 15 days, after which the Centre will take a call on the measures.

Representatives of both the Union and state governments would be part of the panel. As usual, industry representatives favoured the flexibility in hiring and firing, while unions opposed it.

Industry said the flexibility would give more employment opportunities to workers. They also pressed for allowing a union in a company, a separate fund to upgrade skills of those retrenched, and fixed time employment to workers.

Representatives of the Confederation of Indian Industry, the Federation of Indian Chambers of Commerce and Industry, Assocham participated in the meeting from the industry side, and those from CITU, INTUC, BMS, HMS and INTUC from the unions’ side.

The Union labour ministry had proposed integrating three laws —  the Trade Unions Act, the Industrial Disputes Act and the Industrial Employment (Standing Orders) Act — into a single code for industrial relations.

The notice period for establishments to sack employees or shut down a unit was also proposed to be increased to three months from one month now.

Rituparna Chakraborty, president, Indian Staffing Federation, said, "These changes are important to create an incentive for enterprises to expand and create more jobs. Enterprises start businesses to succeed but if our laws prevent them from venturing out then jobs die in the womb.