Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry has thanked the Union Cabinet on its approval for the Labour Code on Industrial Relations 2019, to allow companies to hire workers on fixed-term contract of any duration. The extension of fixed term employment has been the long-standing demand of the industry as it will create scope for immense employment opportunities for the growing workforce in India, said Dr Aggarwal.
The code has retained the threshold on the worker count at 100 for prior government approval before retrenchment, but it has a provision for changing 'such number of employees' through notification. Fixed term employment would be highly beneficial for companies, particularly those involved in seasonal businesses as it will provide opportunities for industry in desired deployment of workforce in their respective factories, said Dr Aggarwal.
The codification will be highly beneficial for the MSMEs as they are constrained by a complicated regulatory environment and labour market rigidities, especially with no-fixed term employment clause to deploy workers as and when required. This impacts the ease of doing business for MSMEs and limits their potential for employment generation, said Dr D K Aggarwal.
These measures will go a long way in further improving our ranking on the ease of doing business of the World Bank, he said. Going ahead, we expect the early approval of the codification of fixed term employment in the winter session of the parliament for becoming legislation, said Dr Aggarwal.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)