Govt clears Code on Industrial Relations Bill; retrenchment norms not eased

Proposes to give legal backing to fixed-term employment

The Centre on Wednesday approved the Code on Industrial Relations (IR) Bill, 2019 — considered to be the most contentious labour law amendments.

The central government has withdrawn its proposal to give flexibility to big companies, in terms of manpower, to retrench or lay off workers and shut shop without seeking official consent, a government official said, requesting anonymity. 

As a result, another proposal to increase the compensation for retrenched or laid off workers is also not a part of the Bill. However, instead of going for a change in the central law, there are provisions in the Bill which safeguards the