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Government propounds to give a free hand to companies with less than 300 employees to lay off or recruit

On September 19th, the government proposed the Industrial Relation Code Bill (IRC) in the Lok Sabha for amendment. The government stated that firms with less than 300 employees can hire or remove workers and don’t need to take into consideration the government’s stance.
The amendment, if passed, would give firms a free hand to manage their staff in terms of hiring and laying off employees if the changes are implemented. The bill was strongly opposed by the opposition as they were against the changes, and has been withdrawn. The Parliamentary Standing Committee later took cognizance of the matter and made a case for allowing firms with less than 300 employees to make decisions of layoff and recruitment on their own.
These changes which the government wants to bring in would give more freedom to the employers in hiring and firing their workers. This change would let the firms introduce arbitrary service conditions for the workers as well. The government has also recommended a restriction of workers’ right to strike. Two other bills have also been proposed by the Centre i.e. The Code on Social Security, 2020 and The Occupational Safety, Health and Working Conditions Code, 2020.

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