State sends 3 labour reform ordinances to Prez for nod
CHANDIGARH: The Punjab government has sent three ordinances approved by the state council of ministers for labour reforms in the state to the Centre for presidential assent.
The three proposed ordinances for making amendments to the Contract Labour (Regulation and Abolition) Act, 1970, Factories Act, 1948, and the Industrial Disputes Act, 1947, were sent by the labour department to the Union ministry of home affairs on January 28 for “prior approval” from the President on the advice of the legal remembrancer (LR). The cabinet had approved the Industrial Disputes (Punjab Amendment) Ordinance on December 4 and the two other ordinances for changes in the contract labour and factories laws two days earlier to promote small units and ease of doing business in the state.
However, the LR advised the department to approach the Union government for seeking prior permission from the President before promulgating the proposed ordinances as required under clause 2 of Article 254 of the Constitution as changes were sought to be made in the central laws. “Where a law made by the legislature of a state with respect to one of the matters enumerated in the concurrent list contains any provision repugnant to the provisions of an earlier law made by Parliament or an existing law with respect to that matter, then the law so made by the legislature of such state shall, if it has been reserved for the consideration of the President and has received his assent, prevail in that state,” reads Article 254(2) of the Constitution.
Law department sources said the labour department was advised to approach the Centre for presidential approval because the proposed amendments were repugnant to provisions of the central law. “Prior approval is a must in such matters to avoid any conflict,” they said. Labour minister Balbir Singh Sidhu also said the ordinances were approved by the state cabinet to boost investment climate and employment generation, but had to be sent to the Centre due to legal requirement and court orders.
CABINET OKAY IN DEC
The state cabinet had on December 2 given its nod for amendments in sections 2, 56, 59, 65, 85 and 105 in the Factories Act, 1948, through promulgation of an ordinance to double threshold limit of number of workers from ‘10’ and ‘20’ in factories with manufacturing processes being carried out with or without the aid of power, respectively. A new Section 106B is also proposed to be inserted to allow compounding of offences, speedy disposal of offences and minimise litigation. “This will help establishment of small manufacturing units and increase the total number of hours of work on overtime,” it said.
An amendment to Section 25K (1) was also approved to increase the minimum number of workers for applying the provisions relating to layoffs , retrenchment and closure from 100 to 300, while ensuring a minimum notice period of three months. Similarly, it also approved enhancement limit under the ambit of the Contract Labour (Regulation & Abolition) Act, 1970, from the present 20 workers to 50 workers. The cabinet had also approved the Industrial Disputes (Punjab Amendment) Ordinance, 2020, to amend Sections 2A, 25K, 25N and 25-O of the central Act to provide time limit of three years for raising an industrial dispute before a conciliation officer. Currently, there is no time limit.
Under Section 25K, any entity having 100 or more workers has to take prior approval from the state government before closing down the industry, laying-off, retrenchment or lock-out. The proposed ordinance increases the number to 300 workers. Then, there are also amendments related to retrenchment, compensation for completed service, etc.
Principal Secretary, labour, VK Janjua said the department placed these ordinances for the approval of the cabinet two months ago as similar changes had been made in other states such as Rajasthan, Maharashtra and Madhya Pradesh. “The Rajasthan government made these amendments without seeking presidential approval, but the law department (LR) insisted on prior permission from the President. We have, therefore, sent the proposed ordinances to the centre,” he added.
Punjab is home to over two lakh micro, small and medium enterprises.
MAJOR CHANGES IN CONTRACT LABOUR, FACTORIES, INDUSTRIAL DISPUTES LAWS REFERRED TO CENTRE