Rajasthan Government Amendments

RAJASTHAN is the laboratory for the saffron government at the centre to implement anti-labour, pro-corporate reforms. Laws are amended first in BJP ruled states and then by the central government. The Rajasthan Government has already enacted several amendments to labour laws adversely affecting both the individual and collective rights of workers:

  • Raising the cap from 100 to 300 workers in the Industrial Disputes Act, 1947 when permission of the appropriate government is required for retrenchment. Thus, no government nod is required for companies employing up to 300 workers. With this amendment, more than 85 percent of the industries are removed out of the coverage of law.

  • Amending the Factories Act: The definition of a factory has been amended to a unit of 20 workers or more (previously 10), and in any part of which a manufacturing process is being carried on with the aid of power; and a unit of 40 workers or more (previously 20), and in which a manufacturing process is being carried on without the aid of power. Due to this increase, small units will not be covered under the Act. With this amendment, more than 65 percent of formal sector will be taken away from the coverage of labour laws.

  • Amendment of Factories Act to make it mandatory to obtain the sanction of the Government for cognizance of offence to be taken.

  • Amendment of Contract Labour Act to exclude further establishments and contractors which employ less than 50 people (previously 20). This excludes a large number of establishments and also allows the employers to split up their establishment and exclude themselves from the Act. A large majority of contract workers are exempted from application of labour laws by this amendment.

  • The Government has issued a circular dated 26th May, 2014 which limits labour inspectors to conduct only 1 inspection per year for every establishment under all applicable laws after obtaining permission from higher authorities. This makes the concept and efficacy of inspections completely redundant.

 

Gujarat Labour Law 2015

THE Gujarat BJP Government has also enacted the Labour Laws (Gujarat Amendment) Act, 2015 amending the Employees Compensation Act, Industrial Disputes Act, Minimum Wages Act, Factories Act, Motor Transport Workers Act, Payment of Bonus Act, Beedi and Cigar Workers Act, Contract Labour Act, Payment of Gratuity Act, Equal Remuneration Act, Building and Other Construction Workers Act and Unorganised Workers Social Security Act.

  • The Bill empowers the state government to ban strikes in public utility services for up to 1 year for the first time, extendable up to 2 years, and also reduces the time available for the workman in raising a dispute from 3 years to 1 year.

  • The Act also allows for the compounding of offences on the payment of measly amounts by the employer (eg. Payment of Rs. 300/- per day not exceeding Rs. 7,000/- for unfair labour practices in an establishment with less than 50 workers, Rs. 1,500/- for non-payment of minimum wages, Rs. 1,500/- for violation of the Equal Remuneration Act, Rs. 5,000/- for violation of the Motor Transport Workers Act, 1961, Rs. 1,500/- for violation of the Payment of Bonus Act, etc.)

  • The Bill provides for self-certification of employers which exempts them completely from inspection under the Minimum Wages Act, 1948, the Factories Act, 1948, the Payment of Bonus Act, the Contract Labour (Regulation and Abolition) Act and Payment of Gratuity Act.

  • The Amendment removes from the Schedule mandating Notice of change to workers before any change the following aspects: The managements are now free to decide shift timings and number of workers employed according to their whims and fancies. Firing any worker is the choice of the employer and no protection to workers.

 

Jharkhand Amendments

IN 2018, Jharkhand state government has made anti-labour, pro-corporate amendments to Contract Labour Regulation Act by raising the minimum number of workers to 50 for applicability of any labour law. Labour Minister also clarified in the floors of the assembly that even existing mandatory facilities of ESI, PF and Gratuity are optional and it is left to the concerned employer to decide whether to extend the same to workers are not. Thus, lakhs and lakhs of contract employees are pushed to the brink without any labour law coverage. Further, the same government has also reduced the period of 3 years to 3 months for a retrenched worker to approach the court of law. Beyond 3 months from the date of retrenchment, the worker will not be legally entitled to approach the court.

 

Maharashtra Labour Law 2016

THE Maharashtra BJP Government has enacted the Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act, 2016 which limits the application of the Contract Labour Act to only those establishments that employ more than 50 workers. Thus large number of small and medium-scale establishments will now be out of the purview of the Act, and larger establishments will also employ four to five sets of 40 contract workers to avoid coming under this law. This means employers can refuse to provide hitherto statutory benefits, including ESI, provident fund, minimum wage, leave and other benefits to contract workers in smaller units. The Central Government has been bringing about various amendments to the existing laws that are chipping away at the basic rights of the workers.