Maharashtra govt plans to amend labour laws

Will promulgate ordinance in a month, introduce bills in monsoon session

The Bharatiya Janata Party (BJP)-led government proposes to amend the Industrial Disputes Act, 1947, and the Contract Labour Act, 1970. The government also proposes to incorporate a provision for a five-fold compensation in the new ordinance.

The government plans to promulgate an ordinance in this regard within a month and subsequently move the Bills in the state legislature during the monsoon session, slated for July. A consultation process will be launched to get stakeholders on board.

The government has indicated that it will follow its own model instead of replicating the labour reforms initiated by BJP-led governments at the Centre or states like Rajasthan and Madhya Pradesh. The proposed labour reforms will be part of Make in Maharashtra and Digital Maharashtra.

The Industrial Disputes Act will be amended to allow factories with less than 300 workers to lay off staff or close down without government permission.

The Contract Labour Act will be amended whereby units with 50 or more contract workers, instead of the present 20 or more contract workers, will have to register with the government.

A senior official, who is associated with the government's exercise to reform labour laws, told Business Standard: “The government wants to initially amend only the Industrial Disputes Act and the Contact Labour Act. The Congress-NCP government had already prepared the groundwork and the Devendra Fadnavis-led government will simply implement it. Considering the difference of opinions among trade unions and political parties, the government does not want to touch other laws and regulations at this point in time.”

The official said the ordinance will be promulgated by end of May or early June and later Bills will be tabled in the monsoon session of the state legislature.  According to the official, the government has proposed to increase compensation to five times instead of three times as mooted by the Congress-NCP government to the workers following the amendments to these two laws.

A senior minister recalled that the government on January 30 had set up a six-member committee to suggest amendments to the existing laws. The committee had looked into about 20 various labour Acts and rules and regulations and recommend amendments.

Other major Acts that were looked into included the Minimum Wages Act, 1948, the Contract Labour (Regulation & Abolition) Act, 1970 and rules, the Building & Other Construction Workers' (Regulation of Employment and Conditions of Service) Act, 1996, the Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, the Factories Act, 1948,

The Maharashtra private security guard (Regulation of Employment and Welfare) Act, 1981,the Maharashtra Domestic Workers Welfare Board Act, 2008, Industries (Development & Regulation) Act, 1951, and the Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969.