The High Court of Karnataka on Friday ordered issue of notice to the State and Union governments on a plea challenging the legality of the changes made to labour laws by promulgating the Industrial Disputes and Certain Other Laws (Karnataka Amendment) Ordinance, 2020, on July 30 for boosting industries.
A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Ashok S. Kinagi passed the order on a PIL petition filed by Karnataka Industrial and Other Establishments’ Employees Federation, a trade union.
According to the amendment made to the Industrial Disputes Act, 1947, industrial establishments with up to 300 workers can now layoff and/or retrench its workers or close operation without prior government permission, as against the earlier requirement of prior permission if the number of employees is 100 or more.
The petitioner has contended that the amendment impacts the fundamental rights of employees as well as trade unions.
While the amendments made to the Factories Act, 1948, increase the overtime limit for workers from 75 hours per quarter to 125 hours, the amendment to the Contract Labour (Abolition and Regulation) Act, 1970, makes this Act applicable for establishments that have employed at least 50 workmen as contract labourers, instead of for establishments with 20 employees or more workmen as contract labourers.