6 states, changed labour law, know important changes and its impact

Ground Report | News Desk

Due to the lockdown implemented across the country for last one and a half months, the industry has stagnated and the economy of the country has shrunk like the whole world. So far, six states have made several major changes in their labor laws to overcome this and bring industries back on track. It is believed that soon some other states may also announce such changes.

The change in labour laws started on 5 May from Madhya Pradesh. After this, on May 7, Uttar Pradesh and Gujarat also announced changes in labour laws for about 3 years.

Now Maharashtra, Odisha and Goa have also announced amendments to labour laws on the lines of UP, MP and Gujarat to attract new industries and give impetus to stalled industries. Some other states, including Bihar, have begun considering changes in labor laws to bring the economy back on track. It is believed that some other states including Bihar may announce such changes soon.

Let us know which 10 major changes have been made in the labor laws by Uttar Pradesh, Madhya Pradesh and Gujarat and what will be the effect on you.

Prime Minister appealed to the states

Recently, Prime Minister Narendra Modi also held a meeting with the Chief Ministers of all the states and discussed about starting the business again with precaution. He also told the Chief Ministers that India has a good chance to attract multinational companies migrating from China. Only after this call of the Prime Minister, Madhya Pradesh, Uttar Pradesh and Gujarat announced changes in their labour laws. After this, Maharashtra, Odisha and Goa have also changed their labour laws. And now other states are also preparing for such changes.

Three years’ rebate

UP, MP and Gujarat have not only exempted industries from the labour law for almost three years (1000 days), but have also made their registration and licensing process online and simple. Along the same lines, other states are also changing the labour laws. New industries used to take 30 days to register and get licences under various sections of the labour law, now that process will be completed in 1 day. Along with this, industries have been given several exemptions such as making shift changes for three months, ending the imperative to give recognition to labor unions to increase production. On the one hand the industry is feeling relieved by these announcements, while on the other hand, the trade unions are fearing that this will increase the exploitation of the employees.

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Let us know about the important changes made in the labor law by Uttar Pradesh, Madhya Pradesh and Gujarat and its impact.

Major changes in labor law of Uttar Pradesh

Uttar Pradesh government has announced a change in labor laws on 7 May. Yogi Adityanath government of UP has made several important changes in labour laws for the next 1000 days. The UP government has approved the ‘Uttar Pradesh Temporary Examination from Certain Labor Lodge Ordinance 2020’ for this.

Let us know about the major changes made in the law

  1. After amendment, only the Building and Other Construction Workers Act 1996 will now be applicable in UP.
  2. Industries must comply with the Workmen Compensation Act 1923 and the Bonded Labor Act 1976.
  3. Now Section 5 of ‘Payment of Wages Act 1936’ will be applicable to industries.
  4. The provisions related to child labour and women laborers have been retained in the labour law.
  5. Apart from the above labour laws, all the remaining laws will remain inoperative for the next 1000 days.
  6. Laws related to settlement of industrial disputes, occupational safety, health of workers and working conditions were abolished.
  7. The law recognizing trade unions has also been abolished.
  8. Laws relating to contract workers and migrant laborers have also been abolished.
  9. Changes made in the labour law will apply to both new and existing businesses and industries.
  10. Industries have been given permission to work in the shift for their convenience for the next three months.

Major changes in labor law of Madhya Pradesh

The Madhya Pradesh government has exempted industries from labour laws for the next 1000 days (about two and a half years) in the state.

Let us know what important changes

  1. In this period of exemption only Section 25 of the Industrial Disputes Act will remain in force.
  2. Labour inspectors will not be able to investigate industries during this period of 1000 days.
  3. The registration / licensing process of industries will be completed online in 1 day instead of 30 days.
  4. Now shops will be able to open from 6 am to 12 pm. Earlier this time was from 8 am to 10 pm.
  5. Companies can make overtime 72 hours a week by making additional payments. Shifts can also change.
  6. In order to keep track of the work, first 61 registers were to be made and 13 returns had to be filed.
  7. The amended labour law allows industries to maintain a register and file a single return.
  8. Contractors with more than 20 workers were required to register. This number has now been increased to 50.
  9. Industries and factories having less than 50 workers have been excluded from the purview of labor laws.
  10. Institutions will be able to hire workers at their convenience. Labour Department and Labour Court will not interfere in the action taken on workers.
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Major changes in Gujarat’s labor law

After Madhya Pradesh and UP, Gujarat has also announced changes in labor laws on Friday late evening.

  1. The process of allotment of land for new industries will be completed in 7 days.
  2. All approvals will be provided to new industries to start work within 15 days.
  3. The rebate given to new industries will continue for 1200 days from the next day of starting production.
  4. The goal is to bring Japanese, American, Korean and European companies to work in China.
  5. Gujarat has identified 33 thousand hectares of land for new industries.
  6. The whole process of registration and licensing etc. of new industries has been made online.
  7. New industries must comply with the Minimum Wages Act, Industrial Safety Rules and Employees Compensation Act.
  8. Gujarat accounts for 7.9 percent of the country’s GDP. The share of total exports is about 20 percent.
  9. Exemption of industries from inspection and inspection of labor inspector.
  10. Right to change shift as per your convenience.

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  • Wahid Bhat

    Wahid Bhat is an environmental journalist with a passion for covering climate change and environmental issues. He holds a degree in English Journalism (EJ) from the Indian Institute of Mass Communication and has received Media Fellow for NFI India (National Foundation for India) and Thomson Reuters Foundation. Wahid's reporting has been published in a range of respected outlets including Earth Journalism, Global Village Space, The Quint, Youth Ki Awaaz, and Devdiscourse Wahidb@groundreport.in

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