Gujarat government clears ordinance for labour reforms

GANDHINAGAR: In the wake of exodus of thousands of migrant workers who are leaving the state, the Gujarat cabinet has approved a new ordinance where existing stringent labour laws will be liberalised to ensure smooth functioning of industries in the post lockdown period.
Even as there is likely to be a major shortage of workers in industries during the post lockdown period, provisions of the new ordinance will help factories and other industrial units to continue production with limited workers.The state cabinet on Wednesday approved the new ordinance.
Under the ordinance, factories will be allowed to work round-the-clock, according to the availability of labour. At present, this relief is being permitted to a very few units. Currently, factories are supposed to operate in eight-hour shifts. However, under the new ordinance, workers can be employed for 12-hour shifts.
In another significant change, factories with a minimum of workers will have to seek registration. Earlier, it was mandatory for factories with 10 workers to get registered. By this reform, around 18,000 small units will be freed from regulations.
A key government source said that the state government had approved the ordinance to ensure smooth functioning of units in the post-lockdown period. “As a result of the long lockdown, and large scale exodus of workers to their native places, industries are expected to face a major shortage of workers,” the source said.
Earlier, industries had to pay double wages to employees who worked additional four hours a day. Under the new ordinance, with the 12-hour shifts, workers can be employed for 72-hours a week instead of 48 hours.