Govt drops plan for easier retrenchment, moots fixed-term employment

The government had earlier proposed allowing factories with up to 300 workers to retrench, lay off, or shut shop without seeking its nod in the Industrial Relations Bill proposed in 2015

The labour and employment ministry, moving swiftly on its reforms agenda, has sent the contentious Code on Industrial Relations Bill, 2019, for the approval of the Union Cabinet.

However, the draft Bill doesn’t include an earlier proposal to ease retrenchment norms for big-sized companies as the ministry has taken a cautious stance due to strong opposition from central trade unions, including the RSS-affiliated Bharatiya Mazdoor Sangh (BMS).

With some states having relaxed retrenchment norms, through an amendment in the Industrial Disputes Act, 1947, the Centre has decided to provide safeguards to these changes. However, there will be no change in