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President clears Madhya Pradesh labour reforms

Retrenched workers to get at least 3 months' compensation

Somesh Jha  |  New Delhi 

Vyapam, Shivraj Singh Chouhan
Madhya Pradesh Chief Minister Shivraj Singh Chouhan

The wait of the Shivraj Singh Chouhan-led Madhya Pradesh government to usher in labour reforms in the state is over with President Pranab Mukherjee approving amendments to 15 central labour laws.

Some of the key amendments include easing retrenchment norms, three months’ compensation to retrenched workers, raising overtime hours and night shift for women.

“We have obtained presidential assent on our labour law amendment Bill seeking amendments to 15 central labour laws,” said Madhya Pradesh Labour Commissioner K C Gupta.

  • Retrenched workers to get at least 3 months’ compensation
  • In the event of a dispute, a worker has to approach conciliation officers within 3 years
  • Workers to get earned leave after 6 months, which could be availed of in the same calendar year
  • Overtime hours in a quarter raised from 75 hours to 125 hours
  • Women can work in night shifts; state govt to ensure security
  • Plant & machinery to be excluded in calculating building and construction cess

Madhya Pradesh is the second state after Rajasthan to be granted presidential assent to its labour law amendments. Gujarat, which had passed a slew of labour law amendments earlier this year, is awaiting presidential assent.

Companies employing up to 300 workers will be allowed to retrench workers or shut shop without government approval in Madhya Pradesh against the provision for up to 100 workers earlier. However, employers will have to pay higher compensation, three months’ notice and at least three months’ salary, in the event of retrenchment. Earlier, either of the two was allowed and employees were paid 15 days’ wages for every year worked.

The Madhya Pradesh government had to wait for more than a year to receive approval for its labour law proposals. The state government had initiated the process by sending the proposals as a draft ordinance to Mukherjee in October last year.

Having failed to secure approval through the ordinance route, the Madhya Pradesh Assembly had this July passed a Bill to amend the labour laws. As labour laws fall under the Concurrent List of the Constitution, on which states can legislate, but the final approval rests with the Centre, presidential assent is a must.

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First Published: Wed, November 25 2015. 00:10 IST