Employers’ associations demanded suspension of labour laws barring some key provisions across the country for next two-three years to help the industry come out of the crisis induced by the lockdown to combat COVID-19 pandemic.

The suggestion follows the Uttar Pradesh government’s move to bring an ordinance to suspend all labour laws barring some provisions for the next three years to give relief to the industry hit by the existing lockdown.

Labour Minister Santosh Gangwar on May 8 held a webinar with employers’ bodies such as Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) and  Associated Chambers of Commerce of India (ASSOCHAM) to discuss issues like restarting economic activities, job creation and measures to improve the situation of MSMEs to enable them to discharge their liabilities under labour laws.

The industry bodies suggested a slew of measures and sought relaxations such as increasing working hours to 12 hours per day from the existing 8 hours per day to help them revive operations, according to a statement by the labour ministry.

The industry associations suggested “to suspend the labour laws for the next 2-3 years except for provisions like minimum wages, bonus and statutory dues, to help the industry come out of the present crisis”, it said. 

Labour is a concurrent subject and states can amend certain labour laws for their regions.

UP okays ordinance to suspend labour laws

The Uttar Pradesh government has approved an ordinance to exempt various industries in the state from different labour laws for three years to revive the state’s economic activities which have come to a grinding halt amid lockdown. 

The state Cabinet chaired by Chief Minister Yogi Adityanath gave its nod to the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020 to exempt factories, businesses, establishments and industries from the purview of all, except three labour laws and one provision of another Act for three years. All labour laws related to labour unions, settling work disputes, regulations for working conditions, contracts, among others shall be suspended. Some labour laws, however, would continue to prevail. 

Gujarat initiates labour reforms

The Gujarat government said it will go all out to welcome the firms wanting to shift out of China by giving them land within seven days and all clearances to set up industries in 15 days.

The Vijay Rupani government also announced that new industries being set up will not be bound by labour laws for 1200 days (3.2 years) from the start of manufacturing to attract foreign direct investment and local investment post the COVID-19 pandemic.

“We have decided that the process of approvals for new industries that wish to establish themselves in Gujarat will be 100 per cent online. They will be allocated land within seven days and all the necessary permissions related to the same shall be provided in 15 days from their application,” he said.

Speaking on the labour reforms initiated to overcome the economic slowdown due to the virus outbreak and lockdown, he said “new industrial units will be provided with relief from all the related labour acts and norms for 1200 days”.

However, they will be bound to follow Minimum Wages Act, Industrial Safety Rules and The Employee Compensation Act, the CM said, adding that his government would come out with an ordinance on this soon.

MP CM announces slew of steps to revive economy

Extending working hours in industrial units and allowing shops to stay open for longer hours are among a slew of measures announced by Madhya Pradesh Chief Minister Shivraj Singh Chouhan to revive economic activities stalled by the coronavirus outbreak.

In addition, Chouhan announced several reforms for industries and in labour laws, which he claimed, will boost industrial activities, increase job opportunities, encourage fresh investments and safeguard the interest of labourers.

The CM informed that relevant amendments have been made in labour laws as per requirement. As per these amendments, registrations and licences under different labour laws will be issued in a day in place of 30 days, renewal of factory licence will be for 10 years instead of one year now. Also, licence will be issued for the entire contract period instead of the calendar year under the Contract Labour Act, he said.

The MP CM informed that with a view to invite new industries and investors in the next 1,000 days all provisions, except Section 25 (which is related to safety) of the Industrial Disputes Act, have been relaxed.

Factory owners will be able to change shifts as per their convenience to increase production. In addition, a provision has been made to maintain a single register instead of 61 registers under labour laws and to file a single return. Under the Factory Act, exemption has been given to factories from inspection for a period of three months. Employers will be allowed to have a third party inspection of their factories.

Similarly, under the Factory Act, units which run without power had to be registered in the past on employing 20 labourers. Now a proposal has been sent to the Centre to remove the limit on the number of workers.

Under the Contract Labour Act, contractors had to register for employing 20 labourers so far. Now they will be required to register only after employing 50 labourers or more.

Provisions of the Madhya Pradesh Industrial Relations Act have been also relaxed. Now in factories, trade unions and factory managers will be able to resolve disputes as per their convenience. They will not have to go to the labour court for resolving disputes.

In industries with less than 100 labourers, exemptions have been given from provisions of the Madhya Pradesh Industrial Employment (Permanent Order) Act. The Industrial Employment Act law was applicable to establishments with more than 50 workers (but less than 100) till now. It has been extended to establishments with more than 100 workers.

Punjab mulls changes in labour laws

The Punjab government said it is mulling changes in both the labour laws and excise policy to kickstart the economic activities in the state by making it an attractive destination for migrant workers, besides boosting its revenue.

Underlining the need for the industry to retain labour and prevent the migrant workers from leaving Punjab, Chief Minister Singh directed the state’s industry minister to take all possible welfare measures to ensure that workers’ interests are well taken care of, the government statement said.

Political parties protest over labour law dilution

Accusing the Centre of diluting labour laws using the coronavirus pandemic as an excuse, eight political parties jointly wrote a letter to President Ram Nath Kovind registering their protest over the issue.

The workers are being treated as slaves, said the letter signed by CPM general secretary Sitaram Yechury, CPI general secretary D. Raja, CPI(ML) general secretary Dipankar Bhattarcharya, All India Forward Bloc general secretary Debabrata Biswas, Revolutionary Socialist Party (RSP) general secretary Manoj Bhattacharya, RJD MP Manoj Jha, Viduthalai Chiruthaigal Katchi president Thol. Thirumavalavan and Loktantrik Janata Dal leader Sharad Yadav.

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