Changing of Labour laws

26/05/2020

In view of emerging scenario amidst Coronavirus pandemic, the Government of India has been trying its best to lure companies looking to move out of China. For attracting the huge investment in the industrial sector, many states like Gujarat, Madhya Pradesh and Uttar Pradesh have changed Labour laws/ rules and adopted some new rules for the convenience of the investers. J&K is contemplating to change the Labour laws/ rules on the pattern of Gujarat and Madhya Pradesh, to attract investment from outside and giving boost to the industrial development across the UT. Since the J&K Administration is also trying its hard to attract massive investment in J&K from outside, especially post August 5, 2019 developments, the Administration is contemplating to introduce new labour rules here on the pattern of Guajarat and Madhya Paradesh shortly. These states have raised the `shift hours’ in the factories from 8 hours to 12 hours and permitted overtime of the work up to 72 hours, with some flexibility in changing shifts. As per the new Labour rules, the shops and business or other establishments can operate from 6 am till midnight.
For bringing end to the Inspector Raj, now under new Labour laws, no factory inspection will be conducted for three months, no inspection of firm with less than 50 workers and moreover, third party inspection has been introduced to facilitate the industry. Free hand has been given to the union holders/ owners and management to `hire and fire’ workers/ labourers, no labour inspection or Government intervention. Moreover, there will not be any role of the trade unions. In Gujarat, the new industrial establishments have been exempted from all Labour laws barring , Minimum Wages act, Industrial Safety Rules, Employees Compensation Act. New Ordinance has come to roll out benefits that will be available for 1200 days. The Madhya Pradesh Government has declared to conduct registration of units/ firms and issue licenses within one day and conduct renewal of a factory license once in 10 years. It also decided that startups need one time legislation and no renewal. It also declared that there will be no registration for contractors with 50 labourers and establishments with up to 100 workers, can hire according to needs. The UP Government has also exempted Industry from all Labour laws barring, Building and Other Construction Workers Act, 1996; Workmen Compensation Act, 1923; Bonded Labour System ( Abolition Act) 1976 and a section of Payment of Wages Act.

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