Labour Reforms – The Balancing Act of sustaining profits and doing welfare

Keeping the spirits of Atmanirbhar Bharat alive, the Chief Minister Chauhan announced the labour reforms under the state goal of creating self-dependent Madhya Pradesh

COVID-19 has taken the world by surprise the whole world today is struggling holding on to the hope that sooner normalcy will be restored but for now humanity and economic trajectory are staring into an unpredictable tomorrow. Madhya Pradesh has not been an exception here as well the economy is going through a difficult phase where economy have to be kept stable and the welfare for the people has to continue.

In these difficult times Chief Minister announced the labour reforms under the state goal of creating selfdependent Madhya Pradesh, keeping the spirit of Atmanirbhar Bharat alive in these difficult times is a commendable step. The labour reforms define The relationship between labourers, employment providers such as industrialists, factory or shop owners, labour organizations and government.

As many as 32 amendments have already been made to 4 state laws and 13 central laws in Madhya Pradesh. As many as 30 services for Ease of Doing Business (EODB) have been brought under the MP Public Service Guarantee Act. Provision for fixed time employment, provision of self-certification for filing returns, provision of single window clearance in Madhya Pradesh.

Provisions for compounding of violations have been made under certain sections of the Industrial Disputes Act and all sections of the Contract Labour Act, Motor Transport Workers Act and Inter-state Migrant Workmen Act. The proposal of exempting such factories which are operated without electric power are fully exempted and those which are operated by electric power and having up to 50 labourers, from the provisions of the Factories Act has been sent to the Central Government.

The Contract Labour Act will be applicable to the labour contractor only if he employs more than 50 labourers. Earlier this labour number was 20. This proposal has also been sent to the Government of India. In the new proposals, third party inspection has been arranged in the industries. In order to protect small institutions from government intervention, inspection is banned in organizations employing less than 50 labourers without prior permission of the Labour Commissioner.

Online registration of registration licenses and returns has been made in all labour regulations. Registration and licensing has now been guaranteed to be granted in 1 day under several Labour Acts. The license renewal period has now been changed from one year to 10 years.

The specialty of labour reforms in Madhya Pradesh is to be balanced. While on one hand it creates an environment for industrial investment, on the other hand there is no compromise on the interests of labourers. The benefits given to the labourers under various Acts are preserved and intact. Women labourers will get equal pay for equal work and 26weeks maternity leave pay. Employment of child labourers will be restricted. The labourers will also have the right to the new minimum wage and dearness allowance and weekly leave. No compromise has been made with the provisions regarding the health and safety of the labourers. Provisions relating to compensation to labourers in the event of an accident during work will continue to remain in force. It will be necessary to adopt a pre-determined procedure in the closure and retrenchment of labourers, in which in the event of retrenchment, it will be necessary to give 3months information or salary. Their labour organisations will be able to discuss with the employers on behalf of the labourers. The labourers will also get the benefit of State Insurance Hospital. Similarly, the benefits due to the Sambal Yojana and various types of labourers' welfare boards will also continue to be received by the labourers as per eligibility.

These balanced efforts of the State Government will attract new investment and will encourage industrial activities. It is only through these measures that the employment of existing labourers will be protected and new employment opportunities will continue to be available.