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Change In Labour Laws To Cope With Lockdown

Writer's picture: Tejas RokhadeTejas Rokhade

Multiple states across India have suspended or reformed labour laws to aid industrial sector in its revival following lockdown due to COVID-19. The steps free industries to generate revenue and provide employment fast, lost due to lockdown. The list of states includes Uttar Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan etc. Complete Coverage: Coronavirus


Crux of the Matter


Different States, Different Measures With the common goal of helping industries, different states have applied reforms in varying degrees. The actions come at a time of loss of 4% of India’s total GDP, which might endure forever.

Changes by Uttar Pradesh Uttar Pradesh has the highest number of migrant workers returned due to lockdown. By inviting Indian and foreign companies to open industries in the state, the UP government has provided the workers a chance to work in their home state itself. The state government has suspended all labour laws except 4 fundamental ones for the next 3 years. The remaining laws ensure that:

  1. Workers get wages on time

  2. Workers’ safety is not compromised

  3. Workers get compensation for injuries/accidents

  4. No forced or bonded labor is carried out

The suspended laws are concerned with:

  1. Workers getting minimum wages for a fixed period

  2. Workers receiving medical care by their employers

  3. Industrial disputes settlements

Changes by Madhya Pradesh The state government has reformed the following:

  1. Factory registrations to be done in 1 day

  2. Working time for shops increased to 6 AM – 12 AM

  3. Renewal of license on a 10-year basis than yearly renewal

  4. Only 1 Register and 1 Return required instead of 61 and 13 respectively

  5. Inspection only in case of complaints

  6. Overtime limit increased from 8 to 12 hours

Changes by Other States

  1. Gujarat, Punjab, and Rajasthan have increased the work time limit to 12 hours

  2. Kerala has increased overtime limit to 100 hours quarterly

  3. Rajasthan and Karanataka have increased the retrenchment threshold to 300

  4. Maharashtra government has allowed annual returns submission instead of multiple returns yearly

The Impact Industrialists have welcomed the reforms, which provide ease of doing business. However, some experts have expressed concern over the suspension of minimum wage law which may affect labourers’ income. Some experts have also stated that lack of migrant workers, combined with the increased demand for labour, may actually increase local wages and the cost to the industries.

Curiopedia


  1. The International Trade Union Confederation is the world’s largest trade union federation. It was formed on 1 November 2006, out of the merger of the International Confederation of Free Trade Unions (ICFTU) and the World Confederation of Labour (WCL). The ITUC represents 207 million workers through its 331 affiliated organizations within 163 countries and territories. Sharan Burrow is the current General Secretary.

  2. Ivan Ivanovich Yanzhul was a professor of financial law at Moscow University who established the Russian state factory inspection. He helped enforce the first Russian labour code on 1 June 1882 which provided a measure of protection for Russian factory workers.

  3. As per the data, released for 2012, in India there were 16,154 trade unions which had a combined membership of 9.18 million (based on returns from 15 States – out of a total of 28 States and 9 Union Territories). Bharatiya Mazdoor Sangh is India’s largest trade union.

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