New Labour Codes Will Not Restore ‘Inspector Raj’, Says Labour Minister

The Union Labour and Employment Minister has stated that the recently implemented labour laws will not lead to the return of the so-called “Inspector Raj” and are instead designed to simplify compliance, promote employment, and create a facilitative regulatory environment for industries. The Minister dismissed concerns that the new framework would increase bureaucratic control or harassment of employers.

 

Addressing apprehensions over the expanded role of labour inspectors, the Minister clarified that inspectors under the new labour regime are intended to act as facilitators rather than enforcement agents creating obstacles for businesses. He emphasised that the objective of the reforms is to encourage ease of doing business while ensuring worker welfare through transparent and predictable regulations.

 

The Minister explained that the new labour codes introduce a balanced approach that protects workers’ rights without discouraging employment generation. He noted that provisions allowing flexibility in hiring and separation are aimed at making enterprises more competitive while formalising employment relationships and extending social security benefits to a larger workforce.

 

Clarifying the role of inspectors, the Minister said their primary responsibility would be to ensure compliance with safety norms, including fire safety, lighting, ventilation, and other workplace security measures. Inspectors will focus on guiding establishments to meet statutory requirements rather than penalising them unnecessarily.

 

The Minister also addressed concerns related to employment thresholds under the new laws. He stated that for establishments employing up to 300 workers, prior government permission would not be required for layoffs, retrenchment, or closure. This change, he said, is intended to remove earlier rigidities that discouraged formal employment and forced employers to adopt informal practices.

 

According to the Minister, earlier regulations often compelled employers to limit workforce numbers to avoid regulatory hurdles. The new framework seeks to remove such distortions and promote transparent employment practices, thereby benefiting both employers and workers.

 

He further pointed out that inspectors will play a key role in ensuring compliance with workplace safety standards, especially in sectors involving higher risk, including manufacturing and mining. Special emphasis will be placed on safeguarding women workers, particularly in situations involving night shifts, where strict safety protocols must be followed.

 

Reiterating the government’s commitment to labour reforms, the Minister said the new laws are aimed at building trust between employers, employees, and the state. He asserted that the reforms mark a shift from a punitive regulatory approach to a collaborative model focused on growth, safety, and social security.

 

The statement is being seen as an assurance to industry stakeholders that labour reforms are intended to reduce red tape and promote responsible compliance, rather than revive outdated inspection-driven governance models.