New government proposal to make firing easier for companies with under 300 employees

New government proposal to make firing easier for companies with under 300 employees



a person sitting at a table: New government proposal to make firing easier for companies with under 300 employees


© Jocelyn Fernandes
New government proposal to make firing easier for companies with under 300 employees

The National Democratic Alliance (NDA) government’s new labour law will support the idea of allowing companies having less than 300 workers to not be required to frame standing orders for their employees, reported Business Standard.

BREAKING: Government has proposed to do away with the need for companies, hiring up to 300 workers, to frame a ‘standing order’ which states key employment terms for its workforce. This will give more teeth to companies to ‘hire and fire’ workers.https://t.co/tapppALlbM

— Somesh Jha (@someshjha7) September 19, 2020

According to the news report, the government’s new proposed labour law will allow such companies to not frame a statutory contract that acts as a collective rights document stating key terms and conditions in a standardised manner for workers. According to a Supreme Court judgment, that collective agreement overrides even the individual contracts between employers and employees in a particular unit.

This proposal will be a part of the Code on Industrial Relations, 2020 scheduled to be introduced by Labour and Employment Minister Santosh Kumar Gangwar in the Lok Sabha on September 19.

Without a standing order in effect, there may be a the lack of classification of workmen and an absence on clarity about other wage-related details such as attendance policy, granting leaves among other heads.

The standing order states the classification of workers in an establishment, manner of informing workers about their legal rights, such as work hours, holidays, wage rates, etc, and conditions for terminating their employment. It also spells the grievance mechanism for workers.

— Somesh Jha (@someshjha7) September 19, 2020

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