Maharastra proposes labour reforms for ease of doing business

Mumbai Nov 13: In a move to further improve the state ranking in ease of doing business Maharastra Government has proposed labour reforms.

Industrial Disputes Act to be Amended

Senior officials have told that under the proposed labor reforms the Industrial Disputes Act would be amended to facilitate easier winding up of the companies without any hurdles.

They have added that "currently any factory having more than 100 employees requires government permission for closure. Now, it has proposed to increase that number to 300 in the Industrial Disputes Act."

A new section in the Act will be introduced to ensure that employees don't complain about their dismissal or retrenchment beyond 3 years.currently, there is no such provision and many employees have misused the law and it became a hurdle for the companies.

Another proposed Amendment is that factories would not require any prior permission of the government for closure if the employers pay sixty days average pay for every completed year of continuous services at the time of retrenchment and also increase the compensation to be given to retrenched laborers by three times.

Officials have added is that we have proposed these amendments based on the labor reforms taken by the Rajasthan state and the government hopes that the reforms proposed would attract more investment in the country.