HR Ignite

The new labour rules in Gujarat, Madhya Pradesh and Uttar Pradesh

  • 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:

  1. Minimum Wages Act
  2. Industrial Safety Rules
  3. 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:

  1. Building and Other Construction Workers’ Act, 1996
  2. Workmen Compensation Act, 1923
  3. Bonded Labour System (Abolition) Act, 1976
  4. 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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