Changes brought to Labour laws by U.P and M.P governments

Changes brought to Labour laws by U.P and M.P governments

Part of: GS Prelims and GS-III – Employment

In News:

• The Uttar Pradesh government has approved an Ordinance exempting businesses from all the labour laws except few for the next 3 years.
• Madhya Pradesh government has also suspended many labour laws for the next 1000 days.

Key takeaways:

Uttar Pradesh:

• Laws related to the following have become defunct:
  • Settling industrial disputes
  • Occupational safety
  • Health and working conditions of workers 
  • Trade unions, contract workers, and migrant labourers 
• No relaxation in laws related to the following: 
  • Bonded labour
  • Deployment of women and children
  • Timely payment of salaries 
• These changes will apply to both the existing businesses and the new factories being set up in the state.

Madhya Pradesh  

• Few important amendments are:
  • Employers can increase working hours in factories from 8 to 12 hours. 
  • The factory registration will be done within a day, instead of 30 days. 
  • The licence renewal will be done after 10 years, instead of a year.
  • Industrial Units will be exempted from majority of the provisions of the Industrial Disputes Act, 1947.
  • Contractors employing less than 50 workers will be able to work without registration under the Contract Labour (Regulation and Abolition) Act, 1970.
• Reasons for change in labour laws in both states:

• • To attract investment. 
  • To encourage industrial activity. 
  • To protect the existing employment. 
  • To provide employment to workers. who have migrated back to their respective States. 
  • To increase the revenue of states which have fallen due to closure of industrial units during Covid-19 lockdown.
• The changes could lead to denying the rights of workers which is a violation of human and fundamental rights.
• It may create insecurity among the workers.
• The changes may lead to desperate conditions for workers.

Important value additions:

The Industrial Disputes Act, 1947

• It was enacted to promote industrial peace by providing appropriate machinery for amicable settlement of disputes arising between employers and employees.