LAW & REALITY

While the direction of the labour laws is toward formalisation of the workforce, many deficiencies lie even in the formal sector, with the gap between what is claimed and what is practiced remaining high

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It has long been argued that India’s labour laws hold back business, particularly the manufacturing sector, from roaring into action and joining the India growth story.

Now, India’s 29 central labour laws have been consolidated into four labour codes, notified on 21 November in what the government has called a “landmark move” that “heralds transformational change” and “lays the foundations of a future-ready workforce.” The operationalisation has been welcomed by many observers as one of the biggest steps in India’s journey of reforms. There is little doubt that labour laws, and indeed several other laws, practices and traditions, in this country are outdated, many flowing from the British Raj and deserve to be revisited. So, in general, a review of what is being presented and even denigrated as the long litany of 29 laws should be a welcome step but only if such a giant change is crafted with at least some consensus so that it can carry everyone along, particularly trade unions.