CII Naoroji Godrej Centre of Manufacturing Excellence

News and Update

Central Government to push big labour reforms, including hire & fore norms

06 May 2016

The government is firm on achieving all it can on labour reforms despite political hurdles. In spite of protests from unions, it is unlikely to relent on the proposal to allow units employing up to 300 to lay off workers sans government approval. It is also in no mood to withdraw proposals to make it tougher to form trade unions and bar outsiders as union leaders.


Labour minister Bandaru Dattatreya has indicated that two labour-related codes — one on wages and another on industrial relations — would be introduced for “discussion and passage” in the monsoon session of Parliament.


While firms employing more than 100 people now require government’s prior approval for labour retrenchment, the minimum employee strength to set up a trade union is 10. The draft code on industrial relations proposes to bar outsiders from being leaders of trade unions in organised-sector units, in what could end the practice of professional trade union leaders, seen by many as detrimental to the interests of both industry and workers.

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