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UP government suspends all labor laws except three to lure industrialists

Prashasti Awasthi Mumbai | Updated on May 08, 2020 Published on May 08, 2020

Yogi Adityanath-led Uttar Pradesh (UP) government has formulated and cleared an ordinance that suspends most of the labor laws for a period of three years. The decision has been taken to revive the state’s economy that has been disrupted due to the coronavirus-mandated lockdown by luring industrialists, as per media reports.

The meeting was convened by CM Yogi Adityanath late in the night and the UP cabinet gave a nod to the 'Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020' which relaxes all labor laws in the state, except three, which are related to abolishment of bonded labor, ex gratia to workers in case of work-related diseases and disabilities, and timely wage payments.

The ordinance covers all the existing industries and manufacturing units as well as the new ones that are coming up in a few years. All labor laws related to labor unions, settling work disputes, regulations for working conditions, contracts, among others shall be suspended for three years in Uttar Pradesh under this ordinance. This includes - The Minimum Wages Act, The Maternity Benefit Act, The Equal Remuneration Act, The Trade Unions Act, The Industrial Employment Act, The Industrial Disputes Act, The Factories Act.

Clearing the ordinance, the state government said in its statement: "For encouraging new investments, setting up new industrial infrastructure and benefit of existing industries and factories, it is imperative that they are provided temporary exempted from the existing labor laws in the state. Therefore, it is important that existing labor laws in Uttar Pradesh are relaxed for a period of three years. To this end 'Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020' has been introduced,"

The ordinance has been sent to Governor Anandiben Patel for her approval.

However, three labor laws have been exempted. These include Bonded Labour System (Abolition) Act, 1976; Employee Compensation Act, 1923 (statutory liability upon an employer to discharge his moral obligation towards employees when they suffer from any physical disabilities or diseases, during the course of employment in hazardous working conditions); Building and Other Construction Workers Act, 1996 (safety, health and welfare measures); and Section 5 of Payment of Wages Act, 1936 (ensure timely payment of daily wages).

Published on May 08, 2020

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