Gujarat assembly passes Industrial Disputes Act (Amendment Bill) 2020

The Gujarat State Assembly on Tuesday gave its nod to the Amendment Bill on the earlier passed Industrial Disputes Amendment Ordinance in July, which allowed industrial units having up to 300 employees to lay off its employees without getting prior approval of the government.

According to the 1947 law, prior government consent was required for industrial units above 100 employees, to lay them off.

The Assembly on Tuesday formally legalised and legislated the ordinance brought in by the Gujarat government on July 1, which was an amendment to the Industrial Disputes Act, 1947.

According to the provisions of the current law, the factories and industrial units of up to 100 employees does not require government approval for carrying out layoffs or retrenchments.

The new bill proposed by Minister of labour and employment, DilipThakor, on the second day of monsoon session of 14th Gujarat state assembly relaxes this provision and raises it up to 300 employees.

Hence, a factory having less than 300 employees would not require government’s permission to lay off its employees.

According to the government, this amendment will allow the factory and industrial units to increase its production and encourage fresh investment in the state.

 “I don’t understand how this amendment, which allows factories up to 300 employees to lay off its workers without getting approval of the government, will help in increasing its production. This is just to aid the industrial owners and in direct violation of workers’ interests. I strongly oppose this Amendment Bill and also suggest the government to bring in laws which are in the interests of workers, their health, their issues,” said Jignesh Mevani, the lone Independent MLA from Vadgam constituency.