The new labour rules in Gujarat, Madhya Pradesh and Uttar Pradesh

The three big BJP-ruled states- Gujarat, Madhya Pradesh and Uttar Pradesh announced significant labour reforms allowing businesses to hire and fire, among host of other measures, to unshackle industry and attract investments. ET examines the labour reforms template of three states, which also seems to be part of efforts to lure companies looking to move out of China.

Madhya Pradesh
1. HIRE & FIRE
* Establishments with up to 100 workers can hire according to needs.

* No registration for contractors with 50 labourers.

2. END OF INSPECTOR RAJ
* No factory inspection for 3 months.
* No inspection for firm with less than 50 workers.
* Third-party inspection allowed.

3. EASIER LICENSES AND REGISTRATION
* Registration and licenses to be issued in a day.
* Renewal of a factory license once in 10 years.
* Startups need one time legislation; no renewal.

4. SHIFT HOURS
* Raised to 12 hours from 8 hours in factory.
* Overtime of up to 72 hours permitted; flexibility in changing shifts.
* Shops and establishments can operate from 6 am till midnight.

UTTAR PRADESH:
Industry exempted from all labour laws barring the following:
1. Building and Other Construction Workers' Act, 1996.

2. Workmen Compensation Act, 1923.

3. Bonded Labour System (Abolition) Act, 1976.

4. A section of Payment of Wages Act to apply.

GUJARAT
New industrial establishments exempted from all labour laws barring the following:
1. Minimum Wages Act.

2. Industrial Safety Rules.

3. Employees' Compensation Act.

*Ordinance to roll out benefits that will be available for 1,200 days.

*100% online approvals within 15 days.

*33,000 hectares set aside; land to be allocated in 7 days.

What it means for business
1. Free hand to employers to hire and fire workers.
2. No labour inspection or govt intervention.
3. No role of unions.

INDIA INC PLEASED
*Says this will provide much needed flexibility.
*There will be competition among states for reforms.

BUT LABOUR UNIONS UNHAPPY
*Want the centre to restrain states from introducing such changes.
*Say these would be detrimental to workers, give free hand to employers.