Guj amendment to Industrial Disputes Act gets Prez nod

AHMEDABAD: Gujarat’s amendment to the Industrial Disputes Act has received the assent of President Ram Nath Kovind, an official said on Saturday.

The Industrial Disputes (Gujarat Amendment) Bill, 2020, which was passed in the state Assembly on September 22 last year, received the presidential assent on January 1, he said.

Since the Industrial Disputes Act is a Central law, any change that states want to make must get the approval of the president, he added.

Vipul Mittra, Additional Chief Secretary, state Labour and

Employment department, said the amendment aims at reforms to increase ease of doing business, and was carried out on the instructions of Chief Minister Vijay Rupani as per the vision of Prime Minister Narendra Modi.

As per Industrial Disputes Act 1947, establishments having 100 or more workers are required to seek prior permission of the state government before effecting layoff, retrenchment, or closure, while the amendment has raised the employee limit to 300.

Similarly, in case of layoffs, workers were, so far, required to be paid compensation amounting to 15 days salary for every year of service. Now, workers will also get an amount equivalent to the average pay of the last three months as compensation, a state government release said.

Earlier, workers needed to be given three months’ notice or wages for the notice period before retrenchment, while, as per the amendment, workers can be retrenched after giving them three months’ notice only.

Mittra said the exemptions are aimed at reducing the compliance burden on industries, which in turn will help the state attract new industries and investments to create more employment opportunities.

Gujarat has planned a series of measures to boost industrial activity, while also protecting workers’ interests, it said.