Govt defends easing retrenchment norms, says it won't be 'hire and fire'

Defends move to have fixed-term employment, insists present system of hiring workers through contractors is exploitative

The Union government on Monday defended its decision to ease retrenchment norms for companies in the labour codes approved by the Parliament, saying the existing provisions in the law for seeking government’s permission was unnecessary.

The government further defended its move to introduce fixed-term employment, insisting that the present system of hiring workers through contractors is exploitative.

The Industrial Relations Code, 2020 has allowed companies with up to 300 workers to retrench and lay off staff, or shut shop without seeking official permission. Earlier this rule was applicable only to units with 100 ore less workers.

“There has been no