What are the Labour Laws which are Suspended amidst COVID-19

INTRODUCTION:

Amid the coronavirus-induced lockdown, an increasing number of states that include Uttar Pradesh, Madhya Pradesh, Rajasthan and Gujarat have pushed through changes to their labour laws by way of amendments ordinances or executive orders some of which would require approval from the central government to come into effect. Reacting to the move by states, trade unions have condemned the blanket exemption to employers from labour laws and termed the move as regressive. [1]

UTTAR PRADESH:

On May 08, 2020, the UP Government promulgated the Ordinance which suspends a majority of the key labour laws and rules thereunder in the State for all factories and establishments engaged in the manufacturing process, for a period of three (3) years. Barring the provisions relating to safety and security of workers under the Factories Act, 1948 and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; Child Labour (Prohibition and Regulation) Act of 1986; Maternity Benefit Act, 1961; Employee's Compensation Act, 1923; Equal Remuneration Act, 1976; Bonded Labour System (Abolition) Act, 1976; and Section 5 of the Payment of Wages Act, 1936 (the right to receive timely wages). All the labour laws have been suspended.

MADHYA PRADESH:

It provides for the suspension of Industrial Disputes Act, and amended the following state labour laws:

• Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961
• Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982

GUJARAT:

The State of Gujarat has vided a notification dated April 17, 2020, exempted all factories registered under the Factories Act, 1948 from various provisions relating to weekly hours, daily hours, intervals for rest etc., with effect from April 20, 2020, with the following conditions until July 19, 2020[2]:

1. No adult worker shall be allowed or required to work in a factory for more than twelve (12) hours a day and seventy-two (72) hours in a week.
2. No worker shall work for more than six (6) hours before he has had an interval for rest for at least half an hour on each day.
3. No female worker shall be allowed or required to work in a factory between 7:00 PM to 6:00 AM.
4. Wages shall be in proportion of the existing wages. (E.g. if wages for eight (8) hours are Rs. 80, then the proportionate wages for twelve (12) hours will be Rs.120).

In an announcement made on May 08, 2020, the Chief Minister of Gujarat has issued a statement that labour law relaxations shall be made applicable to new projects in the State on the condition that they operate for at least twelve hundred (1200) days and for those already operational in that period.

RAJASTHAN:

The State of Rajasthan has issued a notification dated April 11, 2020, for extending working hours to twelve (12) hours per day for a period of three (3) months from the date of the order. To reduce manpower requirements in factories manufacturing essential food and grocery supplies, the Government of Rajasthan has exempted the provisions of working hours of adult workers under the Factories Act, 1948 subject to a few conditions. It is also clarified that the additional four (4) hours per day shall be paid as overtime subject to an overtime limit of twenty-four (24) hours per week[3].

HIMACHAL PRADESH:

The State of HP has issued a notification dated April 21, 2020, exempting all factories registered under the Factories Act, 1948 from provisions relating to weekly, daily, spread hours and interval of rest until July 20, 2020 subject to the following conditions[4]:

1. No worker shall work in a factory for more than twelve (12) hours in any day and seventy-two (72) hours in a week.
2. No worker shall work for more than six (6) hours before he has had an interval for rest for at least half an hour.
3. Wages in respect of increased working hours as a result of the exemption shall be in proportion to existing minimum wages fixed by the Government of HP under the Minimum Wages Act, 1948.
4. Provisions of Section 59 pertaining to overtime wages shall continue to be applicable without any change.

Points in Favour of Suspension of Labour Laws[5]:

• The Suspension of labour laws is necessary to revive the economy in the state that has come to the halt amid the lockdown.
• The State governments claim it to be a necessary move to encourage new investments, latest infrastructures and new industrial activities in addition to boosting the existing industries in the states.
• The Governments is of the opinion that this move will also generate employment for all those workers that are migrating back to their states as it will increase flexibility in employment.
• The Governments also said that workers will continue to be protected of their basic rights as there are 3 laws still in place for them.
• This move will help to re-skill the workers who come from different industry and wish to work in a new industry and develop the required skills needed to work in the industry.

Points in Criticism of Suspension of Labour Laws[6]:

• Several experts believe that this move will discriminate, exploit and harass the workers at the time of the pandemic.
• The labourers will be deprived of social security and this will push the workers from the formal Sector to the informal sector.
• Various economist claims that this will widen the gap between male and female workers which is already very wide in India. This will lead to even lesser participation of female workers in the workforce.
• The workers will be stripped of their basic rights and will get even lessor wages than before.
• The Health of workers will be put to risk by longer working hours and lesser security. Also, this will lead to no job security for the labourers.

IMPLICATIONS OF THE SUSPENSION

In an official release of May 06, 2020, which is based on the decision of the UP Council of Ministers, the suspension of labour laws has been justified by stating that it is the need of the hour in order to give concessions to ongoing and new industrial establishments, businesses and factories. While this move by the Government aims to revive and boost businesses and industries, it has received criticism on the ground that the Ordinance and relaxations of key labour laws infringe on worker rights[7]. What remains to be seen is the manner of implementation of the Ordinance and notifications and whether these will be challenged in Indian courts.

This article is authored by Tanzim Surani, a 4th-year student pursuing a 5-year law course [BA LLB (Hons.)] at the GLS Law College, Gujarat University.

Disclaimer: The article is an original submission of the Author. Niti Manthan does not hold any liability arising out of this article. Kindly refer to our terms of use or write to us in case of any concern.

[1] By Obhan & Associates,

https://www.mondaq.com/india/employment-and-workforce-wellbeing/935398/suspension-of-labour-laws-amidst-covid-19

[2] https://thewire.in/economy/gujarat-labour-law-exemption-new-industries-covid-19

[3] Ibid.

[4] Ibid.

[5] https://taxguru.in/corporate-law/suspension-labour-laws-amid-covid-19.html

[6] https://taxguru.in/corporate-law/suspension-labour-laws-amid-covid-19.html

[7] https://www.mondaq.com/india/employment-and-workforce-wellbeing/935398/, last accessed on, 30/06/2020