Gujarat Labour Laws: Five provisions that make it controversial

Zee Media Bureau

New Delhi/Ahmedabad: A bill aimed at reforming labour laws in Gujarat has received Presidential approval.

The Labour Laws (Gujarat Amendment) Bill, 2015 aims to amend certain provisions in labour laws applicable in Gujarat, including the Industrial Disputes Act 1947, Minimum Wages Act 1948, Factories Act, Contract Labour Act and Employees' Compensation Act, among others.

However, there are a few provisions in the Law that makes it controversial. Lets have a look at five controversial aspects.

1. A provision in the Law seeks to mediate for litigations. Thus, a provision has been introduced where labourers can arrive at compromise with the employer without approaching court. This can be done by paying a certain payment/penalty to the government.

2. Another provision in the Law allows the management to change the nature of employee's job without serving prior information or notice.

3. The new act seeks to give powers to the government to prohibit strikes in public utility services in the first instance for one year. This can subsequently be increased by upto two years any number of times.

4. A provision in the Law has amended the definition of “contractor” to include “outsourcing agencies”, which in some cases, is the government itself. This will attest more power to the government.

5. The new Law has eased "hire and fire" by proposing to lift restriction on sacking of workers and payment of compensation in special investment regions, National Investment and Manufacturing Zone and some other economic zones.