Gujarat Legislative Assembly passes four labour law reforms

The Gujarat Legislative Assembly has passed The Industrial Disputes (Gujarat Amendment) Bill, 2020, The Contract Labour (Regulation and Abolition) (Gujarat Amendment) Bill, 2020, The Factories (Gujarat Amendment) Bill, 2020, and The Labour Laws (Gujarat Amendment) Bill, 2020 on 22.09.2020. The acts seeks to replace the respective ordinances promulgated when the assembly was not in session. Following amendments are brought by the act:

  • The Contract Labour (Regulation and Abolition) Act, 1970 covered establishments and contractors employing 20 or more contract workers. However, in The Contract Labour (Regulation and Abolition) (Gujarat Amendment) Bill, 2020, the number has been revised to 50 or more people.
  • As per the Industrial Disputes Act, 1947, establishments having 100 or more workers were required to seek prior permission of the state government before effecting layoff, retrenchment, or closure. However, the number of workers has been increased to 300 in The Industrial Disputes (Gujarat Amendment) Bill, 2020.
  • The Labour Laws (Gujarat Amendment) Bill, 2020, grants exemption from various labour laws to industries that come up within 1,000 days of the implementation of the Act. These units will also get exemption from various provisions of The Factories Act, 1948 for 1,000 days after commencement of operations. h

The following ordinances are replaced by the legislations:

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