New Labour Laws: The Indian government has initiated a major overhaul with new labour laws aimed at protecting employees and fostering fair workplace practices, especially targeting companies known for exploitative behaviours, often dubbed “Lala companies.”
The new legislation will send a highly strong message to everyone that employee harassment and bullying will no longer be tolerated at workplaces. This also means that companies should now fundamentally change how they treat their workforce.
Goodbye “Hire And Fire” Approach
For decades, many organizations especially Lala companies in the country have freely practiced the “hire and fire” approach, abruptly terminating employees with little notice or compensation. This outdated mindset is now dismantled by the new labour laws emphasizing worker dignity and job security. The new labour laws clearly mandate now that a one-month notice period before termination has to be provided and retrenchment compensation should be continued, ensuring that workers are treated fairly even during difficult times like layoffs.
Reskilling Fund-New Labour Laws
One of the major landmark introductions by the new labour laws is the provision of a reskilling fund. This fund will be designed to equip workers with new skills, preparing them for evolving industry demands and improving their employability in a rapidly changing job market.
The new labour laws also encourage a major shift away from contract or informal jobs towards more formal employment. This change is significant because formal jobs come with built-in fixed wages, mandatory safety norms, social security benefits and other worker benefits that informal jobs usually lack.
Crackdown On Employee Harassment And Bullying
The new labour laws place clear accountability on companies to foster harassment-free workplaces. This will compel organizations, especially those previously known for toxic work cultures, to adopt more humane and ethical management practices.
Collectively, these reforms signal a powerful commitment to redefining the concept of employer-employee relationship in India.
