MP govt to table labour law amendment bill in upcoming session

The Madhya Pradesh government will table a bill in the upcoming session of the Assembly to amend a host of labour laws that will improve ease of doing business, a senior government official has said.

The move 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. The bill will now include the changes suggested by the central government.

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 as it did not approve certain provisions in two of 17 laws proposed to be changed.

Confirming the development, state labour commissioner K C Gupta said that the government will table the bill in the forthcoming Assembly session this month. The bill, once passed, will have to be sent to the Centre for its approval.

“We have already made some changes in the labour laws that were under state domain,” Gupta said.

The Centre has approved MP’s proposed changes in the Industrial Disputes Act to allow companies in the state employing up to 300 people to retrench workers and shut the establishment without government approval.

However, it has rejected a proposal that sought permission of the state labour commissioner before filing cases in courts related to offences under the Factories Act.

The Centre has also turned down the state’s proposal to exempt micro industries, those with investment not exceeding Rs 25 lakh, from the Contract Labour Act and the Factories Act.

Last year, Rajasthan brought changes to the labour laws by tabling bills in the Assembly and subsequently sent the proposals to the Centre for approval.

The Rajasthan government’s amendments to three laws - the Factories Act, the Industrial Disputes Act and the Contract Labour Act have been approved by the Centre.

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

Proposals rejected by the Centre

Permission for prosecution under the Factories Act only after obtaining labour commissioner’s consent

Inspection in micro industries only with permission of the labour commissioner

Employer to deposit Rs 25,000 in child welfare fund if found guilty of employing child labour