MP proposes labour reforms to attract investment

The government said that following amendments to the Industrial Disputes Act, new establishments will get exemption from many provisions in the next 1,000 days. Establishments will be able to keep labourers in service as per their convenience, a government release said, adding that the amendments will stop intervention by the labour department.

According to the government, the proposed amendment to Madhya Pradesh Industrial Employment (Permanent Order) Act, 1961, will exempt factories employing up to 100 workers from the provisions of the Act and “will make workers faithfully cooperate with production’’.

Exempting newly established factories from the payment of Rs 80 per labourer per annum to Madhya Pradesh Labour Welfare Board is on the cards along with exemption from filing annual tax returns.

As per the proposed amendments, establishments employing less than 50 workers will be inspected only with permission of the labour commissioner and factories will have to file one return instead of two. Change in the definition of factory, which corresponds with the number of workers, has also been proposed.

Once the Contract Labour Act is amended, contractors will have to register only if the number of workers is 50 instead of the current 20. This proposal has been sent to the Centre.

While the above changes will take effect only after an ordinance is issued, the state government issued a notification on Tuesday to amend the Public Services Guarantee Act. The time given to certain services related to the labour department has been reduced from 30 days to one day.

These services include online registration under the Factories Act, Shops and Establishment Act, Contract Labours Act and Interstate Migrant Workers Act, Motor Transport Workers Act, MP Building and other Construction Workers Act and Beedi and Cigar Workers (Conditions of Employment Act).