“The Government is constantly making efforts towards ease of doing business and the labour codes are another step in this direction and a welcome one. The labour codes provide for fixed-term employment which will generate employment with better provisions such as payment of applicable gratuity and at same time impart flexibility to industry, introduction of concept of “Negotiating Trade Union” or “Negotiating Trade Councils which will assist the employees to voice their concerns and the industry dealing with a single trade union or trade council for negotiation which may lead to speedy resolution, making necessary changes in wage structure so as to bring uniformity as well as capping the exclusions and increasing the social security net for employees. Bearing in mind the requirements, the threshold for layoff and retrenchment provisions has been appropriately increased. The rules as well as the manner in which implementation is done, will be equally important. The codes strive to achieve a balancing act to protect the interests of both employers and employees and to encourage investments in India.”
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The discussions in the 43rd GST Council meeting were focussed on borrowing by the states and extension of compensation cess beyond the year 2022 to make up for the shortfall in collections. The Finance minister candidly accepted that even after three meetings on the issue there was no consensus reached, however, she described the situation as a “difference of opinion” rather than a “dispute between centre and states”. Ruling out the possibility of borrowing by the Centre due to adverse ramifications on cost of borrowing for states and private sector, it was discussed that the states who have opted for option I and are willing to borrow under the special window facilitated by the RBI, should not be stopped by other member states just because a unanimous decision is not reached. After this third consecutive meeting on the issue, taxpayers sincerely hope that the next meeting focuses on issues which directly affect them.
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