Three labour codes Passed-2020

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Why in News?

Parliament has passed the three labour code merging 24 central labour laws in a major boost to labour reforms.

The National Democratic Alliance government has now merged 29 central laws into four codes. In August 2019, Parliament had passed the first of the codes, the Wage Code.

Why Labour codes are passed?

The Industrial Relations Code, 2020, bring new rules for hiring and firing of labour in mid-sized and large industries, making retrenchment easier.

This effectively brings the “north American hire-and-fire model to the Indian hinterland economy in the hope that businesses recoup and add more jobs on a net basis.

It will minimize the Chakravyahu challenge .

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