Last week, a number of state governments made key changes in the application of labour laws. What are the labour laws in the country, and how can such changes impact firms, their workers, and the economy?
As the economy struggles with the lockdown and thousands of firms and workers stare at an uncertain future, some state governments last week decided to make significant changes in the application of labour laws. The most significant changes were announced by three BJP-ruled states — UP, MP and Gujarat — but several other states, ruled by the Congress (Rajasthan and Punjab) as well as BJD-ruled Odisha, too made some changes, although smaller in scope. UP, the most populous state, has made the boldest changes as it summarily suspended the application of almost all labour laws in the state for the next three years.