India’s Labour Codes : Towards a Coherent and Modern Regulatory Framework

Vidhya Soundararajan
Contd from previous issue
Still, when implemented alongside strong labour protections, such measures can create a win–win: offering higher income potential for workers and greater operational flexibility for firms.
The Industrial Relations code brings greater flexibility to workforce management by raising the threshold for prior government approval for retrenchment and closure from 100 to 300 workers. This allows firms to adapt more easily to changing market conditions while retaining essential worker protections. In the long run, such flexibility can encourage formal job creation, as firms are less likely to avoid hiring or stay below legal limits.
(To be contd)