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8th January 2024 (10 Topics)

Distrust of employers is bred into Indian policy


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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