Punjab government must amend Labour Laws on the line of Rajasthan government and others

The manufacturing sector is being adversely affected by the current Labour Laws. Rajasthan has already initiated steps to make major changes in the Labour Laws. Madhya Pradesh government is following suit. Broadly Labour Laws are divided into three categories (a) Labour Laws enacted by the central government where the central government has the sole responsibility among others for enforcement. This includes E.S.I Act, 1948 and E.P.F Act, 1952 (b) Labour Laws enacted by the central government and enforced both by the central and state government. Among others this includes Child Labour Act, 1986 and Contract Labour Act, 1970 (c) Labour Laws enacted by the central government and enforced by the state government. Among others this includes Factories Act, 1948 and Trade Union Act, 1926.

Rajasthan government has brought changes in the Industrial Dispute Act. Government permission for retrenchment of workers is raised from 100 to 300 workers. It may be recalled that in the year 1976 this limit was 300 workers which was reduced to 100 workers in 1982.

Time limit for raising disputes is three years. Percentage of workers needed for registering Trade Union has been raised from 15% to 30%. In the case of Factories Act it is to be applicable only to firms that have more than 20 workers as opposed to 10 right now.

Punjab has bulk of labour intensive industry. Moreover the share of migrant labour is very high. It is therefore desirable that Contract Labour Act may also be changed in a major way in consultation with the industry.

Under Article 252(2) of the Constitution of India even if the state law runs counter to the central law the burden accent ensure the state laws prevail.

In the case of Rajasthan the central government has sent the case of changing Labour Laws to the President of India. After the President approves the amendments they will come into force.

Punjab government is urged to amend Labour Laws on the line of Rajasthan government and others as suit to the conditions prevailing in Punjab.

(The Ludhiana-based Author is President, Apex Chamber of Industry and Commerce-Punjab)

-----------------------------

Readers may send their news/views/feedback to us: