Labour laws suspension by states to pull businesses out of crisis: ISF

Apex body of staffing firms ISF on Monday hailed the decision of certain states on suspension of some key labour laws for the next three years to help revive businesses hit by the COVID-19 crisis. The India Staffing Federation (ISF) said that simplified labour laws will propel faster growth and hiring, significantly allowing employers to increase opportunities for citizens.

ISF welcomes the decision of various states to "suspend multiple labour law provisions across its boundaries for the next three years considering it will not only help the industry come out of the crisis and boost their investments, but also promote ease of doing business induced by the lockdown to combat COVID-19 pandemic", it said.

ISF President Lohit Bhatia said in a statement, "The various states including Gujarat, Madhya Pradesh, Uttar Pradesh and now Karnataka are now taking sharper chances with labour laws to attract investment into their states."


By introducing time-bound labour law relaxations, these states will make themselves attractive for investors and promote ease of doing business, he said.

These announcements are being arrived at post state cabinet meetings and possibly will be undertaken via the Ordinance route.

"India has been lagging in simplifying its labour laws for nearly 70 years, though the government did try and bring about legislation in past three years to reduce over 44 labour laws to four labour codes, the current set of announcements by the state governments will be more likely to achieve the results," Bhatia added.