Exclusive: @bsindia reviewed a copy of the UP govt's ordinance exempting companies - both existing and new - from the purview of almost all labour laws for the next 3 years. It will need approval of the state Governor and the Indian President
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The proposed law seeks to dismantle the industrial dispute mechanism. This means employers will get a free hand to retrench/lay off workers, to the extent that they will not be obligated to pay retrenchment compensation. No mechanism for workers to raise a dispute.
The draft stated that “all factories & establishments engaged in manufacturing process shall be exempt from the operation of all labour laws for 3 yrs”, subject to a few conditions. It means services sector/establishments dealing with manufacturing ptocess will be covered too.
The Ordinance does not state the specific laws that will be exempt, but the UP govt told us most of the 38 labour laws in the state will cease to exist. “Notwithstanding anything contained in this Ordinance, the previous operations of various labour laws shall not be affected."
The UP govt has kept the minimum wage provisions intact. Workers will continue to be eligible for minimum wages. Companies will have to register all workers they hire electronically to the government. Wages will be paid only through the bank account and not cash.
“The provision of Factories Act, 1948 and Building and Other Construction Workers (BoCW) Act, 1996 relating to safety and security of workers, shall remain applicable,” the proposed Ordinance states. So, the safety aspect of workers has been taken care of but...
Welfare provisions, for instance the necessary provisions of cleanliness, disposal of waste, lighting, drinking water, urinals, canteens, rest rooms, crèches, and wages during the leave period, among others, will cease to exist. No construction cess fund for worker welfare.
The proposed law has put a cap of 11 hours on the maximum number of working hours a day, up from 8 hours right now. The provisions of various labour laws relating to employment of children and women shall remain applicable. Workers will continue to be compensated for accidents.
Though the Ordinance has not specified it, businesses will have to pay towards the EPF and ESI dues of workers, as the laws governing them are controlled and administered by the Centre, according to experts. However, firms will no longer be liable to pay gratuity benefits.
