Now, Assam plans to alter labour laws

The Assam government has proposed a set of changes to labour laws, becoming the latest entrant in the list of states taking such a step in a bid to boost investment. This comes at a time when economic activities have come to a grinding halt because of Covid-19.

However, unlike other Bharatiya Janata Party (Bjp)-led state governments, Assam has not proposed doing away with most labour laws for a certain number of years.

It has proposed introducing fixedterm employment to help both workers and industries, along with bringing more firms out of the ambit of laws governing factories and contract workers. The Assam government has further proposed increasing the working hours in factories from eight hours to 12 hours in a day. These decisions were taken at a meeting of the state Cabinet on Friday.

By introducing fixed-term employment, firms in the state will be able to hire contract workers directly, without the need to go through the contractor system, thereby saving cost and time. But companies will have to offer equal social security benefits to such workers as is given to permanent workers in the same unit, if the Assam government chooses to follow the model law of the Central government. These contract workers will be hired for a fixed number of years.

According to a proposal, the Factories Act, 1948 will be implemented on those manufacturing units functioning without power and employing at least 40 workers instead of 20. For manufacturing units operating with power, the Factories Act will be applicable only if they employ at least 20 workers, instead of the 10 at present. The Act has provisions for the occupational safety, health and welfare of workers in manufacturing units.

However, these changes will require approval of the central government as it will make changes to the central law. Labour falls under the concurrent list of the Constitution and states can make their own changes.

The Contract Labour (Regulation and Abolition) Act, 1970, is proposed to be applicable to firms employing 50 contract workers, up from the 20 at present. The Act defines regulations applicable to contractors, who help firms in hiring contract workers. The state government has also proposed “increase in shift hours from eight to 12 hours during the Covid-19 period.” States have the power to make this change in the Factories Act through a provision in the law, without seeking approval from the central government. States such as Rajasthan, Punjab, Haryana and MP, among others, have already made similar changes.

The changes made by the Assam government, which is governed by a Bjp-led ruling coalition, are unlike other BJP state governments like UP, Gujarat and Madhya Pradesh.

The UP government has proposed abolition of almost all labour laws in the state for a period of three years for all firms. The MP government has also proposed abolition of many provisions of the Industrial Disputes Act and welfare provisions under the Factories Act for new firms setting up shop for the next 1,000 days.

Similarly, the Gujarat government abolished almost all labour laws for new units which operate for 1,200 days. The UP and Gujarat governments have said that provisions related to women and children, along with minimum wages and payment of wages will continue to apply for all companies.

Unlike other Bjp-led state govts, Assam has not proposed doing away with most labour laws for a certain number of years