Madhya Pradesh allows industry and establishments the flexibility to hire and fire workers

Taking the lead in unveiling comprehensive labour reforms, Madhya Pradesh on Wednesday allowed industry and establishments the flexibility to hire and fire workers while exempting them from all labour departmental inspections, maintenance of registers and giving them flexibility on extending the shift hours as per their requirement.

Sources told ET that the state government is keen to give various concessions to the industries in the next one thousand days to help them tide over the economic crisis arising out of COVID-19 pandemic which led to nearly two-months’of nationwide lockdown, shutting down industries and throwing millions of workers out of job.

“Necessary amendments have been made in the labour laws for the purpose of increasing investment and providing employment opportunities to the workers in today's competitive era,” state government official said.

Under the amended Industrial Disputes Act 1947, new establishments in the state will be exempt from several provisions under the Industrial Disputes Act for 1,000 days. “Establishments will be able to keep the labourers in service as per their convenience,” state government said, assuring there will be no intervention of the department of labour and the labour court in action taken by the industries.

Through a gazette notification, the state has also exempted new factories under the Factories Act, 1948 from departmental inspection and giving them flexibility to conduct third party inspections at will. Besides, they will be exempted from maintenance of registers and will be able to change shifts at their convenience.

The state government has also issued an ordinance to the Madhya Pradesh Labour Welfare Fund Act, 1982, exempting all newly established factories from filing annual returns and paying Rs 80 per labourer per year to the Madhya Pradesh Labour Welfare Board for the next one thousand days.

As per the notification issued under the Public Service Guarantee Act 2010, there was a provision to provide 18 services of the labor department in the first thirty days. “Now provision has been made to provide these services in one day,” it said.

Besides, the state has amended the Shop and Establishment Act 1958, allowing shops and establishments to remain open from six in the morning to 12 midnight. “This will give relief to the shopkeepers as well as the customers,” it added.