The industry body says that it will be beneficial to small units typically employing less than 300 workers, as they will not need prior government permission for lay-offs and retrenchments
With the newly introduced labour codes merging 29 labour laws into four broad areas, the Clothing Manufacturers Association of India (CMAI) has stated that it will have a mixed impact on the garment Industry, which consists largely of micro and small units.
Rahul Mehta, Chief Mentor of CMAI, highlighted that it will be beneficial to these units typically employing less than 300 workers, as they will not need prior government permission for lay-offs and retrenchments.
“On the other hand, restriction of using contract labour for ‘core’ activities will affect these units as most employ labour on contract or piece rate basis, especially for stitching, checking, and finishing. For labour, this is a positive move as it will increase formalisation and a safety net,” Mehta explained.
Earlier, ten major Indian trade unions on Friday criticised the Centre’s rollout of the new labour codes, calling the move a “deceptive fraud” on workers and urging the government to withdraw the laws ahead of a nationwide protest planned for Wednesday.
The unions, most of them linked to opposition parties, said the government’s decision to implement the four labour codes would weaken worker safeguards even as officials argue the changes modernise outdated laws and improve welfare measures. The codes merge 29 labour laws into four broad areas: wages, industrial relations, social security and occupational safety. Unions have opposed these provisions for years, holding several nationwide strikes. While the new framework expands benefits such as minimum wages and certain social-security provisions, it also gives companies more freedom in hiring and firing.
