Deregulating labour law restrictions

Press Information Bureau
Government of India
Ministry of Finance

04-July-2019

Deregulating labour law restrictions

The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament today.

Deregulating labour law restrictions can create significantly more jobs, as seen by the recent changes in Rajasthan when compared to the rest of the states. The Survey states no major labour reforms were initiated by the states from 2007 to 2014. In 2014, Rajasthan was the first State that introduced labour reforms in the major Acts. Thereafter, many States followed Rajasthan. A comparison between the indicators for labour, capital and productivity of manufacturing firms makes it clear that flexibility labour laws creates a more conducive environment for growth of industry and employment generation. The States which are rigid in respect of their labour laws are suffering in all dimensions and are unable to create enough employment and cannot attract adequate capital into their States.

On average, plants in labour-intensive industries and in States that have transited towards more flexible markets are 25.4 per cent more productive than their counterparts in States which continue to have labour rigidities.

Size based Limitations posed by Key Labour Legislations

S.NO.LABOUR ACTSAPPLICABILITY OF ESTABLISHMENTS
1Industrial Disputes Act, 1947, Chapter V relating to strikes, lockouts, retrenchment, layoffEmploying 100 or more workers
2Trade Union Act, 2001 – Registration of trade unionsMembership of 10 per cent or 100 workmen whichever is less
3Industrial Employment (Standing Orders) Act, 1946100 or more workmen
4Factories Act, 194810 or more workers with power and 20 or more workers without power
5Contract Labour (Regulation & Abolition) Act, 197020 or more workers engaged as contract labour
6The Minimum Wages Act, 1948Employment in the schedule having more than 1000 workers in the State
7Employees’ State Insurance Act, 1948 – ESI Scheme10 or more workers and employees monthly wage does not exceed Rs.21000/-
8Employees’ Provident Fund & Miscellaneous Provisions Act, 195220 or more workers

Related Posts

Post a Comment

Follow by Email

CENTRAL GOVERNMENT EMPLOYEES PORTAL
Made with FreeOnlinePhotoEditor.com

DISCLAIMER

The contents and information given in this blog are purely informative in nature and should not under any circumstances be taken as authority. All efforts had been made to ensure accuracy of the content on this (www.centralgovernmentemployees.com) blog. The same should not be construed as a statement of law or used for any legal purposes. centralgovernmentemployees.com accepts no responsibility in relation to the accuracy, completeness or otherwise, of the contents. Users are advised to verify/check any information with the relevant departments and to obtain any appropriate professional advice before acting on the information provided in the blog. We cannot guarantee the availability linked pages at all times.
Subscribe Our Newsletter