Yashaswini Manasa
The subject "labour" falls under the concurrent list of the Constitution of India, thus giving power to both federal and state governments to make laws regulating labour and employment. Some State governments unveiled the New Industrial Policy, 2020–25, several crucial labour laws have been amended to tilt the balance in favour of industries. Industrial jurisprudence has to set a level-playing field between capital and labour. Let us understand how the recent changes affect the same.
Initiatives by State Governments to Provide Impetus to Economic Activities
GUJARAT
The govt. had issued a notification under Section 5 of the Factories Act, exempting all the factories in the state of Gujarat from adhering to a set of workers' rights guaranteed by the statute. Its effect was to increase the upper limit of working hours from nine to twelve per day and for and forty-eight to seventy-two per week, shorten rest intervals, and halve overtime pay. But the SC in Gujarat Mazdoor Sabha v State of Gujarat, struck down the Notifications in their entirety.
UTTAR PRADESH
UP Government introduced the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020, applicable to all factories and establishments engaged in manufacturing process and intends to exempt the said factories and manufacturing establishments from the operation of certain labour laws for a temporary period of 3 years subject to the conditions.
MADHYA PRADESH
The Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 increased the applicability threshold to all undertakings from having 50 employees to 100 or more employees. Further, the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 where an employer is required to deposit contribution on behalf of both employer and employee at the rate of INR 1 (employee's contribution) and INR 3 (employer's contribution) every 6 months.
OTHER STATES
A significant amendment to the Factories Act is the increase in the exemption limit for purposes of applicability in States such as – Assam, Himachal Pradesh, Karnataka, Bihar etc. The Ordinance exempts power-aided factories employing up to 20 workers from the provisions of the Factories Act, as compared to the existing threshold of 10 workers. Similarly, the Ordinance exempts factories employing up to 40 workers from the provisions of the Factories Act, as compared to the existing threshold of 20 workers in cases of factories operating without the aid of power.
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