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The Covid-19 pandemic has instigated several changes worldwide, and India is no exception. With the country under lockdown due to the virus, a rising number of states have implemented modifications to their labour laws through executive orders or ordinances. The states that have pushed these changes include Uttar Pradesh, Madhya Pradesh, Rajasthan, and Gujarat. Since labour falls under the concurrent subject as per the Indian constitution, states can make their own laws but require the central government’s approval.
Labour Law Amendments in Uttar Pradesh
The Uttar Pradesh government has permitted an ordinance that excludes businesses from all labour laws’ purview except a few for the next three years. Laws linked to resolving industrial disputes, occupational safety, workers’ health and working conditions, trade unions, contract workers, and migrant labourers have become defunct. However, laws connected with bonded labour, the deployment of women and children, and wages’ timely payment are still in effect.
The labour law adjustments will apply to all current businesses and any new factories being established in the state.
Madhya Pradesh’s Labour Law Suspension
Concurrently, the government of Madhya Pradesh has also suspended several labour laws, which will last for the next 1000 days. One significant amendment allows employers to raise working hours in factories from 8 to 12 hours, along with up to 72 hours a week in overtime, given it is subject to the employees’ consent.
Factory registration procedures have been streamlined so that they can now be completed within a day, unlike the previous 30-day period. Also, the licence renewal is required only after ten years instead of the previous annual requirement.
Industrial units have been granted exemption from the majority of the Industrial Disputes Act, 1947 provisions. Organizations can retain workers in service according to their convenience without interference from the Labour Department or labour courts.
Major relaxations to new industrial units include an exemption from obtaining details of workers’ health and safety and the requirement for maintaining registers and inspections.
Rationale for Changes in Labour Laws
The primary motive behind relaxing labour laws is to attract investment and promote industrial activity. Other reasons include safeguarding existing jobs, providing employment to return migrant workers, increasing transparency in administrative procedures, and turning the distressed economy’s challenges into opportunities.
It also aims to boost the states’ revenues, which have fallen due to industrial unit closures during the Covid-19 lockdown. Moreover, labour reform has been a long-standing demand from various industries. These changes became necessary as investors were trapped in a maze of laws and administrative red tape.
Issues Surrounding Changes
While all these modifications seem beneficial, they also raise concerns regarding worker safety. The revised labour law could potentially allow more factories to operate disregarding safety and health norms. There is also a risk that they might be exploited by new companies to retain labourers according to their convenience.
Denying workers’ rights signifies a violation of human and fundamental rights, creating worker insecurity. The fearing changes may lead to desperate conditions for workers, making the entire situation an issue of substantial concern.
