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LATEST NEWS UPDATES | Labour reforms: Maharashtra plans to tweak proposal to ease factory closure norms -Vishwas Waghmode

Labour reforms: Maharashtra plans to tweak proposal to ease factory closure norms -Vishwas Waghmode

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published Published on Jan 29, 2018   modified Modified on Jan 29, 2018
-The Indian Express

Will include clause to protect rights of labourers during closure of factories, says labour minister

Mumbai:
Three months after it proposed to ease norms for closure of factories, the Maharashtra government is now planning to revise its proposal to make it easier for factory owners with less than 150 employees to close down, instead of the 300 employees as proposed earlier. The government said it would also include a clause to protect labourers’ rights during factory closure. Citing growing automation in industries, factory-owners have been seeking an easing of norms to close down their units. Currently, as per the Industrial Disputes Act, any unit that employs 100 or more people has to seek government permission before it can shut down.

Following representations from factory owners, the Maharashtra Labour department had earlier proposed to increase that number to 300 — implying that factories with 299 or fewer staff members can close down without approaching the government for permissions. “We are planning to allow factories with fewer than 150 employees to close down without government permission, instead of those with 300 employees as proposed earlier. But we plan to introduce a provision in the law to ensure that the labourers’ rights are protected,” state Labour Minister Sambhaji Patil Nilangekar told The Indian Express.

He added that the issue of contract labourers is also being examined, to see if they can be considered at par with permanent labourers at the time of factories’ closure. “We will form a team headed by the labour commissioner to study how contract labourers working throughout the year can be considered for benefits at the time of factory closure,” added the minister.

Currently, despite their large numbers, contract labourers in factories are not considered for any severance pay at the time of closure. Sources in the government said that its move of increasing the employee limit to 150, from the current 100 employees, could help attract investment to the state.

The state government’s move to tweak its proposal comes after the RSS-affiliated labour union, the Bharatiya Mazdoor Sangh (BMS), met the labour minister on Wednesday on several labour issues including the issue of contract labourers’ inclusion in factory closure norms.

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The Indian Express, 29 January, 2018, http://indianexpress.com/article/india/labour-reforms-state-plans-to-tweak-proposal-to-ease-factory-closure-norms-maharashtra-5042998/


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