In order to revive the lifeless economy due to Coronavirus, the path of labor reforms is being adopted in the country. It has been started by the state governments. The governments of Uttar Pradesh, Madhya Pradesh and Gujarat took initiatives in this regard and then Assam, Maharashtra, Odisha and Goa also made some important decisions in this direction, which may have far-reaching effects.
Bihar and some other states are also seriously considering this. The ordinance issued by the Uttar Pradesh government to reform labor laws states that 35 major labor laws will not be implemented in the state for the next three years. However, labor laws involving women and children will remain.
The Government of Madhya Pradesh has taken an initiative to rid the cottage industries and small businesses of various complex labor regulations related to employment, registration and investigation, as well as increasing the period of work in factories and offices from 8 hours to 12 hours. Work will be allowed up to 72 hours a week, but workers will have to be given overtime for this.
The Assam government has also increased the working hours from 8 to 12. It has adopted a fixed-term employment policy. Companies can now directly hire workers for a fixed period of time instead of taking the help of contractors, but they will have to provide all social security like other workers.
The slowdown in the country's economy had already started coming before the outbreak of Corona and many experts were of the opinion that labor reforms would have to be done to increase growth.
Many of the existing laws relating to labor were created or amended during the era of Indira Gandhi, but in practice they had the opposite effect. These gave a boost to the license raj, which created many difficulties for entrepreneurs. Due to the strictness of the labor laws, many entrepreneurs turned to other countries.
Many even stopped setting up enterprises for fear of sinking business. The truth is that today, due to nearly 200 laws of the Center and the states, workers are wandering from rate to rate.
These laws may appear to protect the interests of the workers on paper, but in reality they eliminate the possibility of their employment in the organized sector.
This is the reason that today 90 percent of the employment is in the unorganized sector. Due to these, most of the industries of India are not able to grow from small to large.
However, now the initiative of the states will change the atmosphere. In today's date, there is a need to invest in a big way, start a business and get employment. It is expected that not only will these states benefit from these measures, it will also have a positive impact on the economy of the entire country.