Flexibility in Labour Laws
The
World Bank in its World Development Report, 2013: Jobs has suggested
that India needs to focus on jobs and labour reforms. The report
emphasizes the need to stay within the efficiency “plateau” of labour
laws where labour policies are not too stringent and allow the creation
of more wage employment, especially in cities and in activities
connected to global markets. With the working population increasing by 7
million people each year in India, accelerating urban development and
increasing labour flexibility are key to creating jobs in more
productive activities, thus sustaining growth and reducing poverty. So,
for India, the desirable actions to promote growth would include
creating towns, reforming Labour Laws to allow flexibility and improving
Governance in general and specifically in areas that impede
entrepreneurship.
As regards the reaction of Government of India, it is stated that
Ministry of Labour & Employment is mandated to create a work
environment conducive to achieving a high rate of economic growth with
due regard to protecting and safeguarding the interests of the working
class in general and those constituting the vulnerable sections of the
society in particular. Accordingly, the Ministry of Labour &
Employment reviews/updates various Labour Laws from time to time which
is a continuous process.
There is no evidence to show that the share of informal workers in the
organized sector has gone up due to non-flexibility in Labour Laws.
However, the Ministry reviews labour laws as a continuous process and
makes amendments as and when considered necessary to help the workers
and industry in the country.
The Minister of State for Labour & Employment Shri K. Suresh gave
this information in reply to a written question in the Lok Sabha today
whether the World Bank has commented that India needs to amend labour
laws to provide flexibility to companies dealing with changes in demand
pattern; the details of suggestions made by the World Bank in this
regard along with the reaction of the Government thereto; whether due to
non-flexibility in labour laws the share of informal workers in the
organised sector has gone up; and if so, the steps taken/being taken by
the Government to amend the Indian Contract Labour Act, 1970 and
Industrial Disputes Act, 1947 to help the workers and industry in the
country.
ST/
(Release ID :89882)
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