Labour reforms by states have limited potential, defeat purpose: Experts

At least 20 states and UTs have amended their laws and increased the threshold for retrenchment without government approval from 100 to 300 workers

As the Centre nudges States and Union Territories (UTs) to make “necessary” amendments to their existing labour laws in a bid to align them with the “spirit” of the four new labour codes passed by Parliament in the absence of a clear timeline for notifying these codes, experts opine that State reforms have only limited potential in terms of achieving ease of doing business, streamlining regulation, improving working conditions, and supporting industry growth.

 

Besides, labour reforms by States end up creating fragmented jurisdictions, which exacerbate complexity in their implementation, thus making the whole reform exercise undertaken by the Centre redundant.