Fixed-term employment needed, but its abuse should be prevented: Bhartruhari Mahtab

The government has accepted most of the recommendations of the parliamentary standing committee on labour as it finalised the the three new labour codes – industrial relations, social security and occupational safety and health (OSH). The committee’s chairman, BJD MP Bhartruhari Mahtab, however, is not impressed with government’s decision to keep fixed-term employment (FTE) open-ended. In an interview with Surya Sarathi Ray, Mahtab shares his views. Excerpts:

Though the government has accepted most of the committee’s suggestions, it has trebled the threshold for applicability of the standing orders to firms employing 300 workers. How do you react to this?
The minister has said that three-fourths of our recommendations relating to three codes have been accepted. But the recommendations that were not accepted are equally important. However, I will wait for the rules and regulations that are being framed by the government because some of our proposals may get reflected in it.

The committee has recommended the threshold of employees for industrial units to resort to lay-off without government permission be raised from 100 to 300. The government was of the opinion that respective state governments should take a decision on it, but we haven’t agreed with it. It may create confusion in the country. Some states may keep it at 100 and some others at 300.

FTE, which the committee had earlier said, could lead to exploitation of workers and promote hire and fire, has been legalised in all sectors.

The committee had recommended that FTE should not be at the cost of permanent employment. FTE should have a fixed term of maximum 3-5 years and can be renewed only once more. But we see what is there in this law now is an open-ended provision. Apprehension that is being expressed by trade unions is justified. By not restricting the FTE to two terms, there is the possibility that fixed term employee become a permanent feature by giving him/her employment after completion of every fixed term.

The OSH Code allows the government to exempt new establishments from the law for a specified period in the interest of economic activity and employment. Such exemptions were availed earlier only for public emergencies and for just three months. Can it affect labour welfare?
It has been suggested in OSH Code that new establishments may be exempted from labour law for a specified period of time in the interest of the economy. Earlier such exemptions were availed only at emergency period and that too for a specific period, maximum for three months. I am of the opinion that nothing should be done by the union government or the state that would affect labour welfare. I believe productivity of the country can only be increased allowing both the capital and labour work in tandem.

There are provisions in the codes, both in the IR as well as OSH, under which labour laws can be kept in abeyance by the states through notification. What is the potential of misuse?
The state’s responsibility is to see that the interest of the labour force is protected. There are provisions in the codes where the executive is empowered to take decisions for the interest of public good. Keeping that in mind at times, the government through notification may keep in abeyance certain labour laws. I have said earlier that decision of the executive, even if it is ratified by the legislature, it has to be concurred by the judiciary. This is the process in a democratic country. No amount of misuse can be tolerated. I believe that every organ of our democratic system is competent enough to respect constitutional provisions.

Finally, do you think that the reforms will spur growth and enhance employment? Are they win-win for both the labour and the capital?
Yes. Reforms in labour were long-felt need. It will definitely spur growth and will also enhance employment. For a conducive atmosphere, there is need to have trust between the employer and employee. Both have to work in a positive manner. The state should only be a facilitator. The four codes are in keeping with this holistic approach.