GIZ hosts seminar to discuss reform of India’s labour laws

The Indian government has initiated a dialogue to review labour laws and bring them in line with requirements for rapid economic growth and investment. On 29 October, the Indo-German Social Security Programme (IGSSP) hosted a talk by eminent sociologist Professor Dipankar Gupta, to present his recommendations on reforms in the Industrial Disputes Act (IDA).

The recommendations broadly aim to reduce the trend towards informalisation of labour in Indian industries, remove thresholds that determine labour entitlements, and instil trust between workers and employers. The key recommendations include having all workers on the muster rolls regardless of the size of the company, uniform severance pay and other social security benefits on dismissal of workers or retirement, establishment of Workers’ Councils with representation only from those employed at the unit, and a time-bound dispute resolution mechanism.

Professor Gupta explained that in the course of the last few months, he and his team have held consultations on the recommendations with representatives from the corporate sector, trade unions as well as government. He expressed the opinion that India was at a crossroads where it was important to take bold steps to ensure better working standards and higher productivity, which in turn would fuel economic growth and all round well-being.

The talk was followed by a lively interaction, with questions regarding the feedback he received from various stakeholders and their willingness to go with such radical recommendations. The discussion also focused on the need to adopt the recommendations as a whole and not in a piecemeal manner, so that they were effective. There was also a pointer to the need for stronger social protection to be put in place.

Background:

GIZ hosts seminar to discuss reform of India’s labour laws

Professor Dipankar Gupta is a Distinguished Professor and Director of Centre of Political Affairs and Critical Theory (C-PACT), Shiv Nadar University. He was formerly Professor in the Centre for the Study of Social Systems at Jawaharlal Nehru University, New Delhi. In his corporate engagements he has contributed in setting up customised ethical business manuals, advising clients on corporate social responsibility, and carrying out social audits and sustainability services. 

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