States have already started dismantling some labour regulation, and my arguments on why this is a step in the right direction. 1/n https://t.co/OjMh6iGhTN— Shruti Rajagopalan (@srajagopalan) May 8, 2020
Labour regulation in India regulates every aspect of the employer-employee relationship and requires permissions for everything - hiring, firing, closures, changing the task of an employee, and insists on paying wages, overtime, bonuses far above market clearing wage. 3/n— Shruti Rajagopalan (@srajagopalan) May 8, 2020
Those who are lamenting the loss of labour protection because UP and MP suspended labour regulation need to understand that 90% of India's labour for never had that protection in the first place. The restrictions either prevented hiring, or created "contractor/dalal system". 5/n— Shruti Rajagopalan (@srajagopalan) May 8, 2020
Ideally, there should be minimal labour regulation, mostly health and safety regulation, and some default standard fixed term contracts. But in the absence of sensible regulation, no regulation is better than the current labour permit raj that hurts labour interests. 7/n— Shruti Rajagopalan (@srajagopalan) May 8, 2020
Read more at https://twitter.com/srajagopalan/status/1258604944082579465
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