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8th January 2024 (10 Topics)

Distrust of employers is bred into Indian policy

Context:

Jan Vishwas Bill Version 2.0 shifts in policy strategy from retail to wholesale filtering after next year’s general elections to further reduce corruption and accelerate good job creation.

The Problem: Regulatory Overreach and Corruption

  • Labor Law Complexity: Labor laws, notably the Factories Act, contribute to a maze of over 8,682 imprisonment clauses, burdening employers.
  • Selective Enforcement Breeds Corruption: Vaguely drafted laws enable corruption through selective enforcement, exploited by civil servants and election winners.
  • Impact on Enterprises: Regulatory burden disproportionately affects high-productivity enterprises, promoting informality and hindering wage-focused economic challenges.

Jan Vishwas Bill 1.0: Incremental Reform

  • Innovative Consolidation: The bill innovatively consolidated laws, distinguishing between "good" and "bad" jail provisions to combat corruption.
  • Shortcomings of Retail Approach: A retail approach, relying on voluntary surrendering, defended the status quo, amending only 4% of relevant Central Acts.
  • Strength in Identifying "Bad" Provisions: The bill showcased strength in identifying and eliminating 113 "bad" jail provisions through ministry reflections.

Jan Vishwas Bill 2.0: Strategic Shift

  • New Strategy for Broader Impact: Jan Vishwas 2.0 proposes a shift from retail to wholesale filtering, introducing a diverse government committee to set impactful criteria.
  • Committee's Role in Decriminalization: The committee will evaluate criteria for employer imprisonment, compelling ministries to remove provisions not meeting the set standards.
  • Early Decriminalization Success: Decriminalization initiatives, like those by the Ministry of Company Affairs, have shown positive results, reducing judicial burdens and promoting efficient resolutions.
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