Speaking at the Times Network India Economic Conclave, presented by IDFC First Bank, he said the labour codes are designed to protect workers’ rights and provide assurance of minimum wages for workers across the country. The reforms are aimed at creating a fair, modern and worker-focused labour framework suited to India’s evolving economy, he said.
“We have formalised employment in the country by increasing the number of workers to 300 per unit, which was earlier 100,” Mandaviya said. The labour minister said the government views workers as a priority segment that directly contributes to shaping the country’s future and that the labour force would be a central pillar as India marks 100 years of Independence.
Earlier, employers used to provide formal employment to 100 workers to avoid legal hassles, and the rest were employed informally, he said, noting that labour laws designed nearly 100 years ago were created for a very different era, when job structures and workplace realities were not the same as they are today.
The new codes have formalised employment of the left-out workers, and they will get all benefits that an enrolled employee gets, he said.
Mandaviya said that the inspector will be a facilitator and not an obstructer in the work of an industry and assuaged concerns on increasing compliance burden.
He said the Modi government’s “reform, perform and transform” philosophy led to a review of the existing labour laws and the decision to modernise them.Earlier this year, the government consolidated 29 labour laws into four comprehensive labour codes. In a statement it said at the time that the exercise was undertaken to address long-standing challenges and make the system more efficient and contemporary.
“The codification aims to enhance ease of doing business, promote employment generation, ensure safety, health, social & wage security for every worker,” it said.