Proposed Reforms in Labour Law by Madhya Pradesh Government

It is indeed true that India is facing a sharp economic downturn in every industry due to Covid 19 pandemic. All the state Government are trying to boost industrial activities and attract new investment in their state. The State Government of Madhya Pradesh has taken initiative with the same object to amend the labour laws. With the target to bring economy back on track, Madhya Pradesh has proposed many amendments in labour laws for next One Thousand days.  

The proposal is made to amend various Labour laws such as Industrial Disputes Act, 1947, Madhya Pradesh Industrial Relations Act, 1960, Madhya Pradesh Industrial Employment (Permanent Order) Act, 1961, Shop and Establishment Act, 1958, Contract Labour Act, 1970. Many concessions will be provided to all the categories of the industry. Some of the relaxation which are proposed are as follows:

  1. New Industries will be exempted from all the provisions of Factories Act, 1948 except few provisions (section 6, 7, 8, 21-41(H), 59, 67, 68, 79, 88, 112)
  2. Industries will be exempted from the departmental inspections
  3. Industries will be able to conduct third party inspections at will
  4. Maintenance of registers will be exempted
  5. factories will be exempted from examination and inspection by factory inspector
  6. Industries will be able to change shifts at their convenience
  7. Establishments will be able to keep the labourers in service as per their convenience.
  8. Intervention of Department of labour and the labour Court in action taken by industries will be stopped.
  9. After the issuance of an ordinance under the Madhya Pradesh Labour Welfare Fund Act, 1982, all the newly established factories will be exempted from the payment of Rs. 80 per labourer per year to the Madhya Pradesh Labour Welfare Board for the next one thousand days. Along with this, they will also get an exemption from the annual return.
  10. As per the notification issued under the Public Service Guarantee Act 2010, there was a provision to provide 18 services of the Labour Department in the first thirty days. Now provision has been made to provide these services in one day.
  11. Online registration will be given in one day itself on applying online for registration under Factory Act 1948, Shop and Establishment Act 1958, Contract Labour Act 1970, Interstate Migrant Workers Act 1979, Motor Transport Workers Act 1961, Madhya Pradesh Building and Other Construction Workers Act 1996 and Beedi and Cigar Workers (Conditions of Employment) Act 1966.
  12. Shops and establishments will be able remain open from 6am to 12am (midnight).
  13. Establishments employing less than 50 workers can be inspected only after the permission of the Labour Commissioner. 
  14. factories will have to file one return instead of two returns.
  15. Contractors employing less than 50 workers will be able to work without registration
  16. Under the Factory Act, amendment to definition of Factory is proposed. The proposal of 20 labourers instead of 10 with electric power factories and 40 workers instead of 20 in without electricity factory have been made in the definition of a factory.


Aditi Rajput | Abhay Nevagi and Associates, Advocates.

Source Website:- Department of Public Relations (Government of Madhya Pradesh)