Guj amendment to Industrial Disputes Act gets presidential nod

Now, workers will also get anamount equivalent to the average pay of the last three monthsas compensation, a state government release said.Earlier, workers needed to be given three monthsnotice or wages for the notice period before retrenchment,while, as per the amendment, workers can be retrenched aftergiving them three months notice only.Mittra said the exemptions are aimed at reducing thecompliance burden on industries, which in turn will help thestate attract new industries and investments to create moreemployment opportunities.The COVID-19 pandemic has adversely impactedindustries and, thereby, economic growth.

Gujarat's amendment to theIndustrial Disputes Act that seeks to increase ease ofbusiness by reducing the compliance burden on industries interms of layoffs, retrenchment and compensation has receivedthe assent of President Ram Nath Kovind, an official said onSaturday.

The Industrial Disputes (Gujarat Amendment) Bill,2020, which was passed in the state Assembly on September 22last year, received the presidential assent on January 1, hesaid.

Vipul Mittra, Additional Chief Secretary, state Labourand Employment department, said the amendment aims at reformsto increase ease of doing business, and was carried out on theinstructions of Chief Minister Vijay Rupani as per the visionof Prime Minister Narendra Modi.

As per Industrial Disputes Act 1947, establishmentshaving 100 or more workers are required to seek priorpermission of the state government before effecting layoff,retrenchment, or closure, while the amendment has raised theemployee limit to 300.

Similarly, in case of layoffs, workers were, so far,required to be paid compensation amounting to 15 days salaryfor every year of service. Now, workers will also get anamount equivalent to the average pay of the last three monthsas compensation, a state government release said.

Earlier, workers needed to be given three months'notice or wages for the notice period before retrenchment,while, as per the amendment, workers can be retrenched aftergiving them three months' notice only.

Mittra said the exemptions are aimed at reducing thecompliance burden on industries, which in turn will help thestate attract new industries and investments to create moreemployment opportunities.

''The COVID-19 pandemic has adversely impactedindustries and, thereby, economic growth. The government istrying to play the role of a facilitator to put growth back ontrack,'' Mittra said.

''These labour reforms, coupled with industry-friendlypolicies, quick decision-making, and availability of skilledmanpower, will help Gujarat attract new industries. However,we are ensuring that interests of workers are protected,'' headded.

Since the Industrial Disputes Act is a Central law,any change that states want to make must get the approval ofthe president.

The Gujarat government has planned a series ofmeasures to boost industrial activity, while also protectingworkers' interests, an official release said.

More ordinances were passed in the Assembly on theContract Labour Act, Factory Act and Child act, and they arealso expected to be approved soon, said the governmentrelease.