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Gujarat: Govt provides relaxation in labour laws for employers

“In a bit to help the industry hit hard in the present situation and to attract fresh investments, the government has announced a series of relaxations and more will follow,” said Vipul Mittra, additional chief secretary, labour and employment department.

By: Express News Service | Ahmedabad | November 27, 2020 11:12:14 pm
Gujarat labour laws, Gujarat covid crisis, AHmedabad news, Gujarat news, Indian express newsChanges have been made in rules 24, 25 and 27 of the Contract Labour (Regulation and Abolition) Act, 1970 that exempts an employer who has fewer than 50 contract workers from paying registration and licence fees. (Representational)

Relaxing labour laws in Gujarat in the wake of Covid-19, the state government has given employers or owners of industrial units “flexibility to seek registrations and licences for longer duration and avoid annual visits to offices of labour department for renewals”.

The labour and employment department of the state government issued draft notifications on November 26 proposing to amend the Contract Labour (Regulation and Abolition) Act, 1970 and Inter-state Migrant Workman (Regulation of Employment and Conditions of Services) Act, 1979.

“In a bit to help the industry hit hard in the present situation and to attract fresh investments, the government has announced a series of relaxations and more will follow,” said Vipul Mittra, additional chief secretary, labour and employment department.

Changes have been made in rules 24, 25 and 27 of the Contract Labour (Regulation and Abolition) Act, 1970 that exempts an employer who has fewer than 50 contract workers from paying registration and licence fees. This fees paid for grant of certificate of registration ranges between Rs 1,800 for those contractors employing 50-100 workers to Rs 12,000 for those engaging more than 800 workers. Similarly, the license fee that a contractor has to pay for employing 50 would range between Rs 450 to Rs 6,750. This licence can be obtained for up to five years.

Similar changes have been made to the Acts that allows employer to take registrations and licences for a longer duration and thus avoid visiting labour offices for renewing registrations and licences, every year.

“The Covid-19 pandemic has adversely impacted industries and there by economic growth. The government is trying to play the role of a facilitator to put growth back on track. These labour reforms, coupled with industry-friendly policies, quick decision making and availability of skilled manpower will help Gujarat attract new industries. However, we are ensuring that interests of workers are also protected,” Mittra added.

The government has invited objections and suggestions from “all persons likely to be affected”. The objections and suggestions received by additional chief secretary, labour and employment department, will on or before the expiry of 30 days will be taken into consideration before finalising the rules.

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