NE NEWS SERVICE
GANDHINAGAR, SEPT 22
The Gujarat Assembly on Tuesday approved a bill under which the upper limit for an industrial unit to seek the state government’s nod for lay-offs, retrenchment or closure has been increased from 100 workers to 300.
While tabling the Industrial Disputes (Gujarat Amendment) Bill in the Assembly, state Labour and Employment Minister Dilip Thakor said such amendments were also made in the Central act by Madhya Pradesh, Andhra Pradesh and Congress-ruled Rajasthan.
The bill replaces an ordinance which was brought in by the state government in July for effecting the amendment.
Now, an industrial establishment having 300 or more workers is not required to take the permission of the state government for lay-offs, retrenchment or closure, said Thakor.
Earlier, industrial units employing over 100 workers were required to take the government’s nod as per the Act.
This provision would encourage employers to recruit more number of workers, said the billing document.
The bill also proposes that in case of lay-offs or closure of a unit having more than 300 workers, the affected labourers would now get last three months average salary in addition to the standard compensation as described in the Act, said Thakor.
Thakor said such amendments would attract investment in the state, increase the number of industrial units and, thus, create employment opportunities.
It was passed with a voice vote amid objections from the opposition Congress.
On the second day of the monsoon season, the Assembly also passed the Contract Labour (Regulation and Abolition) Act, 1970.
At present, commercial entities or contractors are required to get themselves registered and obtain licence if they employ 20 or more contractual workers.
This amendment now raises the limit to 50 workers, with Thakor claiming the move will increase compliance and boost economic activity.
