As it rolls out a slew of labour reforms, the Government is proposing to amend laws to provide greater social security by tripling the compensation a laid off worker will get.
"If any factory is to be closed down, it is important to take care of the security of workers. I cannot save the industry then, but what I can do is see that the worker gets wages for 45 days. It was 15 days earlier. We are creating this window in the interest of workers when such a situation arises," labour Minister Bandaru Dattatreya told the news agency in an interview.
As part of labour reforms focused on making it easier for employers to fire workers, the Government wants the notice period for establishments to lay off employees or shut down a unit be raised to three months from one month now. Also, retrenched workers will be paid an average salary of 45 days per year served, three times the current 15 day limit.
The changes would form part of the labour law reforms being contemplated by the Government to protect the interest of workers and at the same time make them contemporary with a view to promote the ease of doing business.
"Many Acts were made 50 or 60 years ago. Trade Union Act was made in 1925. They need to be changed. Change means they have to be simplified. Enforcement (of laws) is important. We are trying to bring in changes to remove duplication and cumbersome processes," he said.
The minister said the changes will help a worker get wages for 45 days up from present 15 days in case of a lockout. When asked if proposed changes in labour laws are aimed at making it easier for companies to carry out retrenchment, Dattatreya said the Government is trying to see that workers get a better deal in the event of a lockout being announced.
"A factory announces lockout with no option having been left. law is also like that. No law is (meant) for closing down an industry.
That's why employability is important. Wages are likely to rise commensurate with the employability. Whatever law we bring, it is in workers' interest; to see that employability grows," he said.
Changes in laws are important to create jobs, facilitate investments and to make NDA government's flagship programmes 'Make in India' and 'Skill India' a success, he said.
"Youth force is growing in this country. If jobs are to be created for them, then laws should also be easy for industries. Then they can make investments. 'Make in India', 'Skill India' are going to assume significance.
"Accordingly, some changes are necessary in laws. laws should be in tune with the times. Otherwise, it would be difficult for implementation.
We are making laws accordingly," the labour Minister said.
Dattatreya said whatever laws are made by the Centre, the responsibility of their actual implementation lies with the State Governments.