Significant changes in Labor law
Indian labour law is characterised as ' inflexible' and as the economy struggling during the lockdown and many workers and firm have incertain future, then some state government tried to change the application of labour law.
What are Indian labour laws?
Estimate there are more than 300 state laws but there is no defined set of Indian labour law. There are many types of labour law which are divided into four categories. The main objective of Minimum Wages act 1948, provides fixing of wages in certain employment and it covers more workers than any other organisations.
One of the most controversial act is Industrial Dispute act 1947, which provide that an employee can close down the industrial enterprises, strike and lockdowns. There is also a Factory Act, to ensure the health and safety of the product and welfare of the workers.
There are Shops and Commerical Act 1947, provide the holidays and hours of employment and employment to the children and women working in this sector.
Why will wages fall?
Changes are taking a day to be a day, even before COVID -19, the wages growth rate is moderating. There is always a wide gap between formal and informal wages rates. And when laws are removed then the rate of wages goes down sharply. In rural area women working just earn 20 to 30% what man earns in an urban area.
As there are too many laws which is unnecessary and makes it a bit complicated and is not implemented. As per the calculation, in India, 90% of workers are in the informal economy which would help to get a better salary and benefits l. They are getting better security service than the women in the rural sector.
Uttar Pradesh, Madhya Pradesh, Gujrat and several other states have made. Many changes in labour law. And the most popular state UP has suspended almost all the labour law. This is one of the explosive charges made by the UP government this year. Many firms are facing problems by not getting skilled labours and there is weak enforcement of contracts, etc are taking place and these changes by the government had not let any impact on job creation and opportunities.
There are many schemes made by the government for the welfare of labourers but due to lack of awareness, they are getting the benefits provided by the government. But the significant changes in the law will help the workers to make their life better.