Date : 07-10-2015

CIRCULAR No.90/2015ToAll Members of the Association

Sub: Labour Law Amendments by State of Gujarat

1. The Government of Gujarat has proposed Labour Law Amendments byintroducing Labour Laws (Gujarat Amendment) Bill, 2015. The Bill proposesfar reaching amendments to the existing provisions of certain LabourLaws. The salient features of the proposed Amendments are listed below:-

i) Employees Compensation Act, 1923:- The proposed amendmentprovides that if an Application is not made by the employee himselfor by his dependant before the Commissioner for Compensationwithin a period of 90 days from the occurrence of the accident, then,such Application can be filed by the Officers authorised in this behalfby the State Government.

ii) Industrial Disputes Act, 1947:- Under the Existing provision ofClause (n) of Section 2 of the Act, the State Government is empoweredto prohibit strikes in public utility service. In the first instance for notexceeding six months, but, it may extend it by such time by anyperiod not exceeding six months at any one time. The amendmentproposed to increase such initial period of six months to one yearand subsequently any period not exceeding two years respectively.

iii) Section 2A of the Act provides that the workman may make anapplication against his dismissal, discharge, etc. by raising anIndustrial Dispute to the Labour Court or Industrial Tribunal beforeexpiry of 3 years. The proposed amendment reduces such time limitof 3 years to one year.

iv) The Government of Gujarat has inserted a New Chapter V-D to theIndustrial Disputes Act which came into force from 10.02.2014 whichenables the Industrial Establishments set up in the special EconomicZone to lay off or retrench the workmen or close the establishmentwithout prior permission. Further it provides for payment ofcompensation at the rate of 45 days per each year of completedservice. Now Gujarat Government has proposed to extend chapter V-D to cover 100% Export Orientated Industrial Establishments set upin Special Investment Region (SIR) and National Investment andManufacturing Zones(NIMZ). Further amendment proposed in Section

KARNATAKA EMPLOYERS' ASSOCIATIONNO.74, 2nd FLOOR, SHANKARA ARCADE, VANIVILAS ROAD, BASAVANAGUDI

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25-ZA of the Act to the effect that in case of retrenchment orclosurethe workman would be eligible compensation for 60 days instead of45 days� salary for each year of completed service.

v) Section 31 of the Industrial Dispute Act provides that Fine uptohundred rupees where penalty for contravention of any provisions ofthe Act is not provided. The amendment proposed to enhance thepenalty of Rs.100/- to Rs.21,000/- in view of the fact that the newprovision for compounding offence is inserted.

vi) By way of Amendment to Section 9A of the I.D.Act, Entry Numbers6 and 11 of the IV Schedule to the I.D.Act is proposed to be deleted.Entry No.6 reads as under:-

�starting, alteration or discontinuance of shift working otherwisethan in accordance with the Standing Orders.�

Entry No.11 reads as under:-

�Any increase or redemptions (other than casual) any numberof persons employed or to be employed in any occupation orprocess or department or shift not occasioned by thecircumstances over which the employer has no control.�

With the deletion of the above items, there will be no requirement toserve the Notice as contemplated under Section 9A of the I.D.Actbefore effecting any changes in respect of the above two items.

vii) Minimum Wages Act, 1948:- The definition of �Contractor� appearingin Clause (e) of Section 2 of the Act is proposed to be amended tobring within its ambit �outsourcing agency�.

viii) Section 11 of the Act is proposed to be amended to provide for anyEstablishment registered either under the Factories Act or GujaratShops and Establishments Act wherein not less than 20 employeesare engaged shall pay minimum wages through cheque or depositingthe same in the Scheduled Bank.

ix) Building and other Construction Workers (Regulation ofEmployment and Condition of Service) Act:- The definition of�building worker � is proposed to be amended to the effect that theterm �building worker� shall not include such person who drawswages three times more than the monthly wages of a skilled labour.

x) The amendment is proposed to make the provisions of the IndustrialDisputes Act applicable to the un-organized workers.

xi) It is also proposed to make certain offences punishable under thedifferent Acts as compoundable.

xii) Self certification Process. A New provision is proposed to beinserted in the Minimum Wages Act, 1948, the Factories Act, 1948,the Payment of Bonus Act, 1965, the Contract Labour (Regulationand Abolition) Act, 1970 and the Payment of Gratuity Act, 1972 to theeffect that every occupier, employer or the principal occupier of such

class of factories or establishments, as the case may be, as may benotified by the State Government taking into consideration the numberof employees etc. shall have to get himself enrolled under the SelfCertification-cum-Consolidated Annual Return Scheme as may beprescribed under the rules. The provisions are also proposed to beincorporated to the effect that the State Government shall prescribeaudit and assessment norms for compliance of labour laws andlabour standards and the occupier, employer or the principal occupier,as the case may be, shall become eligible for exemption from theinspection. This would help in reducing the number of inspectionsand less interference by the authorities in the day-to-day affairs ofthe industrial establishments.

2. Labour Laws � Gujarat Amendment Bill, 2015 has been uploaded on theWebsite of KEA. Members who are interested to go through the entireamendment may please download the same.

for KARNATAKA EMPLOYERS' ASSOCIATION

sd/-(B.C. PRABHAKAR)

PRESIDENT