Companies with up to 300 employees will be able to lay off without government approval

New Delhi, 20 September 2020 Sunday

The government will give more rights to companies in terms of recruitment and layoffs. Until now, companies with less than 100 employees did not have to seek government approval before retiring or closing units. The Ministry of Labor has now increased this limit to 300 employees.

Which means companies that have up to 300 employees have no need to seek permission for staffing and layoffs. It will now be easier for large companies to lay off employees and close firms. Apart from this, the Ministry of Labor has given the state government the power to increase it as per its requirement.

At the same time, the government has expressed its desire to make Universal Social Security available. The Industrial Relations Code-2020 Bill was introduced in the Lok Sabha on Saturday. Under which a company with less than 300 employees will now be able to lay off employees whenever it wants without seeking approval from the government. Introducing the bill amid opposition from opposition forces, including the Congress, Gangwar said it would pave the way for labor reform in the country.

Introducing three bills related to labor reform, Gangwar said the bills were sent to a standing committee of Parliament. We have accepted 174, or 74 per cent, of the committee's 233 amendments. "These bills include the Industrial Relations Code 2020, Occupational Safety, Health and Working Conditions 2020 and the Social Security Code 2020.

Until now, only companies with less than 100 employees could lay off without government approval. The government has added a section to the new Labor Code. Which would allow companies to lay off and close firms that have an average of at least 300 employees per day annually.

The law will give state governments the freedom to set their own recruitment, appointment and working hours in factories and establishments. In addition, the government will help provide social security to all people.