Gandhinagar: Central approved The Industrial Disputes (Gujarat Amendment) Bill, 2020 with the President of India’s assent on 01.01.2021.

The Gujarat Assembly had passed this bill, aimed at ushering in various labour reforms, on 22nd September presented by Minister Dilip Thakor.

“Labour laws reforms have been done in line with Ease of Doing Business on instructions of the CM Shri Vijay Rupani as per vision of the Prime Minister” said Vipul Mittra IAS, ACS of the Labour & Employment dept who was instrumental in drafting largest number of labour reforms in recent pandemic situation.

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.

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 be required to be paid an amount equivalent to the average pay of the last three months as compensation. Similarly, workers were required to be given three months’ notice or wages for the notice period before retrenchment. Now, workers can be retrenched only after giving them three months’ notice.

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

Gujarat government has planned a series of measures to boost industrial activity, while also protecting workers’ interests. More ordinances were passed in assembly on the Contract Labour Act, Factory Act & Child act are expected to be approved soon.

“The Covid-19 pandemic situation has adversely impacted industries and there by economic growth. The government is trying to play the role of a facilitator to put growth back on track. These labour reforms, coupled with industry-friendly policies, quick decision-making, and availability of skilled manpower, will help Gujarat attract new industries. However, we are ensuring that interests of workers are also protected,” he added.

“We are confident that these measures will make it easier to do business in Gujarat.” Vipul Mittra.