Madhya Pradesh industry hails bill to amend labour laws

The Madhya Pradesh industry has welcomed the crucial labour laws amendment bill which was passed amidst Vyapam din in the state assembly before it was adjourned sine die on Wednesday.

The bill, which amends 15 labour laws, including eight major ones, will now be sent to the President for his approval, labour commissioner K C Gupta said.

Some of the amendments include increase in overtime from 75 hours to 125 hours, at least three months’ compensation to the retrenched workers and night shifts for women with security.

The bill makes Madhya Pradesh the third state after Rajasthan and Gujarat to have amended the labour laws this year. HT had, in its issue dated July 14, reported that the MP government would be tabling a bill in the monsoon session of the Assembly to amend a host of labour laws.

State council chairman of the Confederation of Indian Industry (CII), Girish Mangla said, “This is a welcome development that will improve the investment climate in the state. Among other things, the amendments will allow companies employing (up to) 300 people to retrench workers or shut shop without government approval. Some other provisions are also a step in the right direction.”

The government’s move to pass a bill in the state assembly follows the Centre’s rejection of six amendments to two labour laws, mostly related to micro industries, which were earlier sent in the form of an ordinance.

In October 2014, the state government had sent the proposed amendments to the Union government for approval, which is mandatory for the labour laws that come under the Concurrent List.

After holding a series of discussions with the state government, the Centre sent back the proposals in April as it did not approve certain provisions in two of 17 laws proposed to be changed.

The government then decided to first table the proposals cleared by the Union government in the state assembly and then sent them back to the Centre.

Making a pitch for the potential investors during the Global Investors Summit in October 2014, chief minister Shivraj Singh Chouhan had said that the proposed labour reforms would create a conducive atmosphere for entrepreneurs and also benefit the labourers.

Ease of labour

Overtime hours in a quarter increased from 75 hours to 125 hours

Retrenched workers to get at least three months’ compensation

Workers to get earned leave after six months, as opposed to 12 months of service required now

In the event of a dispute, a worker has to approach conciliation officers within 3 years

Women can work in night shifts but state govt will have to ensure security

Plant and machinery to be excluded in assessing building and construction cess