Hire, fire, do business: How new labour codes aim to help companies

Labour reforms passed by Parliament aim to make hiring and firing workers easier as they reduce a number of regulatory approvals. Somesh Jha explains how these reforms could help businesses

President Ram Nath Kovind signed into law last week labour legislations that aim to attract investment and make it easier for companies to do business in India.

With parliamentary approval for the Industrial Relations Code, 2020, Code on Occupational Safety, Health and Working Conditions Code, 2020, and Social Security Code, 2020, the government amalgamated 29 labour laws into four codes. The Code on Wages, 2019, got parliamentary approval in August 2019.

Companies will have to deal with one registration, one licence — for setting up a factory, or hiring contract workers--and one return on compliance once the four codes are