Rajasthan assembly clears amendments to four key labour laws in less than two months

JAIPUR: Last week, the Rajasthan assembly unanimously cleared amendments to four key labour laws less than two months after the Vasundhara Rajeled state government announced the ambitious changes which ostensibly seek to encourage industrial investment and job creation.

More than twenty important amendments were made to the following acts: Industrial Disputes, Factories, Apprentices and Contract Labour (Regulation and Abolition). According to labour department officials, the state will soon forward the amendments for presidential assent which should come soon. Interestingly, despite the ruling Bharatiya Janata Party dominating the state assembly— of the total 200 MLAs, 163 are from the BJP—the amendments (see box) were passed only after the opposition of a select ruling party MLAs to specific amendments was quelled following discussions on Thursday.

For instance, while speaking about the amendment to the Industrial Disputes Act through which the ceiling on number of workers who can be laid off without government nod was increased from 100 to 300 workers, MLA Prahlad Gunjal warned, “This will certainly increase monopoly of owners and act adversely against workers’ interests as the entrepreneurs will only set up factories which need less than 300 workers.”

Three more assembly members warned against the new provisions in other acts for bearing the potential to work against “workers’ and state’s interests”, but the proposed changes were ruled out by minister Yunus Khan and Rajendra Rathore by assurances about the state having the right to intervene “whenever needed”.

Curiously, through the course of these discussions, the few Congress MLAs present openly backed the government and, with the ministers, helped ensure that the amendments are passed without any changes.