Ordinance passed by UP to suspend labour laws

On May 7, 2020, the Uttar Pradesh Government passed an ordinance to suspend labour laws in the state for three years. The ordinance is being passed to boost industrial investment and also help the migrants who have returned back to the state. Around 7 lakh migrant workers from all over the country have returned back to their state.

Significance

The “Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020” will allow the industries to freely employ large number of migrant workers. Also, the ordinance will help to bring back the economy back to track.

The ordinance applies to new factories and existing businesses as well.

Exclusions

The ordinance does not include Building and other Construction Workers Act, Bonded Labour Act, Workmen Compensation Act and Section 5 of Payment Wages Act.

Inclusions

The ordinance will suspend laws that related to occupational safety, industrial disputes, contract workers, trade union related laws and laws related to migrant labourers.

Is Central Government Approval required?

Labour is a Concurrent subject. Therefore, both centre and state governments shall frame their own laws. However, approval of central government is required.

The UP Government, has therefore, sent the ordinance for the approval of the central government.

Current Scenario in other states

The Madhya Pradesh Government had exempted the manufacturing units from Factories Act, 1948.

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