
"The government of Prime Minister Narendra Modi implemented four labor codes that were approved by parliament five years ago. The codes that have become effective are the code on wages, the industrial relations code, the social security code and the occupational safety, health and working conditions code. The Government is seeking to simplify work regulations with some dating to British colonial rule, while also looking to ease conditions for investment. It also says the reforms will improve worker protections."
""By modernizing labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms," the Labour Ministry said in a statement."
"Businesses have long called for India to modify its labor regulations, particularly in the manufacturing sector, which is a major pillar of the South Asian country's economy. Meanwhile, the Association of Indian Entrepreneurs was cited by Reuters news agency as saying that the new rules would significantly increase costs for small and medium-sized enterprises. The group called for transitional support from New Delhi."
The government implemented four labor codes covering wages, industrial relations, social security and occupational safety, health and working conditions. The stated aims include simplifying outdated regulations, attracting investment and improving worker protections. The Labour Ministry framed the reforms as modernizing labour regulations and preparing a future-ready workforce. Trade unions strongly oppose the changes, labeled them deceptive fraud and called nationwide protests on November 26. While the rules provide social security and minimum-wage benefits, they also make hiring and firing easier for companies. Businesses warn the rules could raise costs for small and medium-sized enterprises and seek transitional support.
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