- Gujarat, Madhya Pradesh and Uttar Pradesh declared important labour reforms allowing businesses to hire and fire, among host of other measures, to unshackle industry and attract investments
- The labour improvements model of three states, which also seems to be a part of efforts to trap companies looking to maneuver out of China
GUJARAT
New industrial establishments exempted from all labour laws barring the following:
- Minimum Wages Act
- Industrial Safety Rules
- Employees’ Compensation Act
- Ordinance to roll out benefits which will be available for 1,200 days
- 100% online approvals within 15 days
- 33,000 hectares set aside; land to be allocated in 7 days
What it means for business
- blank check to employers to rent and fire workers
- No labour inspection or govt intervention
- No role of unions
UTTAR PRADESH
Industry exempted from all labour laws barring the following:
- Building and Other Construction Workers’ Act, 1996
- Workmen Compensation Act, 1923
- Bonded Labour System (Abolition) Act, 1976
- a neighborhood of Payment of Wages Act to use
Madhya Pradesh
1. HIRE & FIRE
- Establishments with up to 100 workers can hire consistent with needs
- No registration for contractors with 50 labours
2. END OF INSPECTOR RAJ
- No factory inspection for 3 months
- No inspection for firm with but 50 workers
- Third-party inspection allowed
3. EASIER LICENSES AND REGISTRATION
- Registration and licenses to be issued during a day
- Renewal of a factory license once in 10 years
- Startups need one-time legislation; no renewal
4. SHIFT HOURS
- Raised to 12 hours from 8 hours in factory
- Overtime of up to 72 hours permitted; flexibility in changing shifts
- Shops and establishments can operate from 6 am till midnight
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