A panel, headed by Finance Minister Arun Jaitley, is mulling converting 44 labour laws into four simplified codes. They relate to industrial relations, wages, social security and safety. "These (labour) reforms must begin as soon as possible even though their completion may take some years," said the government's thank tank in its 3-year draft action agenda.
"Unless, we bring about substantive change either by amending the existing laws or rewriting them afresh, we can not expect to change the current situation where low productivity and low-wage jobs dominate the landscape," the draft action agenda stated.
Noting that overly high levels of protection discourage employers to hire workers on a regular basis, it said that in order to "incentivise entrepreneurs to accelerate creation of regular salaried jobs, greater flexibility in labour law is required".
It also said that any enterprise which is less than five years old, with less than Rs 25 crore turnover, may be permitted to declare itself a start up, with no subsidies in any form provided to it.
This would ease up the burden of compliance of vast array of labour laws on the enterprise and pave the way for greater creation of jobs, the draft action agenda noted.