Labour, Land Law and Tax Reforms : Updates

[RISING SUN]

Labour reforms finally coming to India: Shivraj Chouhan liberates industry, after agri privatisation
In a major announcement today, Madhya Pradesh CM Shivraj Singh Chouhan has proclaimed that new registration and license for companies, shops, etc, in MP will be done in one day, compared to 30 days.

X
MP CM said that the older requisite to fill 61 registers and 13 returns will be abolished and only one register and the return has been brought in place.
Shivraj Singh Chouhan’s Madhya Pradesh government has moved swiftly to reform labour laws in the state, days after sweeping reforms in the state’s agricultural sector, now liberating cottage industries and small businesses from various onerous rules regarding employment, registration, and inspection of labour. The new relaxation will make it significantly faster for the companies to get a license and registered; will free them from the requirement of frequent license renewals; and will make it easier to employ labour. Shivraj Singh Chouhan added that the move will help reduce the red tape and help the businesses to run smoothly. He added that this step will also boost the Ease of Doing Business, which is one of the major goals of the Modi government.

Here’s the list of key labour reforms announced by Madhya Pradesh Chief Minister Shivraj Singh Chouhan:

• Madhya Pradesh CM said that the older requisite to fill 61 registers and 13 returns will be abolished and only one register and the return has been brought in place. Even the self-certification will be enough to file the return.
• If the officers concerned doesn’t issue the license in one day, fine will be collected from them and will be given to the trader as compensation.
• Under the new labour reform, there will be no inspection in the firms employing less than 50 workers and in the small and medium enterprises, the inspection will take place only with the permission of the labour commissioner or in case of complaint.
• Renewal of license will be required to be done now after 10 years versus the current period of one year.
• The period of working shifts in factories has also been increased from 8 hours to 12 hours and overtime of up to 72 hours has been allowed in the week.
• The existing rules in MP allow women workers to work in factories and IT industry in night shifts.

Industry body FICCI welcomed the long-awaited reforms. “This will boost economic activities and attract investments. It will lead to holistic industrial growth supporting the workforce and creating job opportunities,” FICCI said in a tweet citing Madhya Pradesh chair Dinesh Patidar.
Meanwhile, the MP Chief Minister brought in agriculture reform by announcing that exporters, traders, food processors, etc, can open a private mandi and can buy the agriculture produce by visiting the farmer’s land or house. The amendment in the mandi rules was aimed at giving freedom to the farmers to sell their produce at a better price, and on their own choice.

Labour reforms finally coming to India: Shivraj Chouhan liberates industry, after agri privatisation

In a major announcement today, Madhya Pradesh CM Shivraj Singh Chouhan has proclaimed that new registration and license for companies, shops, etc, in MP will be done in one day, compared to 30 days.

www.financialexpress.com

 

[_Anonymous_]

Labour reforms finally coming to India: Shivraj Chouhan liberates industry, after agri privatisation
In a major announcement today, Madhya Pradesh CM Shivraj Singh Chouhan has proclaimed that new registration and license for companies, shops, etc, in MP will be done in one day, compared to 30 days.

X
MP CM said that the older requisite to fill 61 registers and 13 returns will be abolished and only one register and the return has been brought in place.
Shivraj Singh Chouhan’s Madhya Pradesh government has moved swiftly to reform labour laws in the state, days after sweeping reforms in the state’s agricultural sector, now liberating cottage industries and small businesses from various onerous rules regarding employment, registration, and inspection of labour. The new relaxation will make it significantly faster for the companies to get a license and registered; will free them from the requirement of frequent license renewals; and will make it easier to employ labour. Shivraj Singh Chouhan added that the move will help reduce the red tape and help the businesses to run smoothly. He added that this step will also boost the Ease of Doing Business, which is one of the major goals of the Modi government.

Here’s the list of key labour reforms announced by Madhya Pradesh Chief Minister Shivraj Singh Chouhan:

• Madhya Pradesh CM said that the older requisite to fill 61 registers and 13 returns will be abolished and only one register and the return has been brought in place. Even the self-certification will be enough to file the return.
• If the officers concerned doesn’t issue the license in one day, fine will be collected from them and will be given to the trader as compensation.
• Under the new labour reform, there will be no inspection in the firms employing less than 50 workers and in the small and medium enterprises, the inspection will take place only with the permission of the labour commissioner or in case of complaint.
• Renewal of license will be required to be done now after 10 years versus the current period of one year.
• The period of working shifts in factories has also been increased from 8 hours to 12 hours and overtime of up to 72 hours has been allowed in the week.
• The existing rules in MP allow women workers to work in factories and IT industry in night shifts.

Industry body FICCI welcomed the long-awaited reforms. “This will boost economic activities and attract investments. It will lead to holistic industrial growth supporting the workforce and creating job opportunities,” FICCI said in a tweet citing Madhya Pradesh chair Dinesh Patidar.
Meanwhile, the MP Chief Minister brought in agriculture reform by announcing that exporters, traders, food processors, etc, can open a private mandi and can buy the agriculture produce by visiting the farmer’s land or house. The amendment in the mandi rules was aimed at giving freedom to the farmers to sell their produce at a better price, and on their own choice.

Labour reforms finally coming to India: Shivraj Chouhan liberates industry, after agri privatisation

In a major announcement today, Madhya Pradesh CM Shivraj Singh Chouhan has proclaimed that new registration and license for companies, shops, etc, in MP will be done in one day, compared to 30 days.

www.financialexpress.com

Better late than never. However, having said that,
Makes one wonder if he's been in power for 3 terms, why exactly is he implementing it now & not before?

 

[RISING SUN]

UP Govt Finalises Ordinance Suspending Major Labour Laws In State For Three Years To Attract Investment
The Yogi Adityanath government has finalised an ordinance suspending a majority of labour laws in the state for three years.

This is an attempt to help both existing and new industrial units in the state.

The recommendations regarding the labour laws were finalised by a group of ministers comprising labour minister Swami Prasad Maurya and MSME Minister Sidharth Nath Singh.

The state cabinet has cleared the Uttar Pradesh Temporary Exemption from Labour Laws Ordinance, suspending more than 30 labour laws in the state.

Chief minister Yogi Adityanath had said recently that Uttar Pradesh would amend labour laws to attract new investments, especially from China.

A government spokesperson said, "The economic activities in the states have been severely affected and slowed down due to the outbreak of Covid-19. This is because businesses and economic activities came to a halt more or less due to the national lockdown."

According to sources, there are more than 40 kinds of labour laws in the labour department, some of which are now redundant. About eight of them are being retained under the ordinance.

These include the Bonded Labour Act of 1976, Employee Compensation Act of 1923 and Building and Other Construction Workers' Act of 1996.

Provisions of laws pertaining to women and children, like the Maternity Act, Equal Remuneration Act, Child Labour Act and section 5 of the Payment of Wages Act which states that wages of a person earning less than Rs 15,000 a month cannot be deducted are also being retained.

Other labour laws like those related to settling industrial disputes, health and working conditions of workers and trade unions, contract workers and migrant workers will be frozen for three years.

By freezing the existing laws, owners of factories have been given more powers to hire and fire without attracting punitive measures from the labour department up to a certain limit.

The new ordinance also prevents the enforcement wing from raiding the premises of factories on minor issues.

Labour minister Swami Prasad Maurya said that suspension of the laws would help in setting up of new industries and ease problems of existing ones at a time when the Covid-19 lockdown had dealt a severe blow to the economy.

"The laws will apply to both existing businesses and new industries. We have made sure that labourers do not suffer or are taken advantage of but we also had to remove any additional burden on the industrialist," he said.

Since labour is a concurrent subject, states can frame their own laws but will need the approval of the Centre to enforce them.

Therefore, the ordinance will also be sent to the Central government for approval.

UP Govt Finalises Ordinance Suspending Major Labour Laws In State For Three Years To Attract Investment

The Yogi Adityanath government has finalised an ordinance suspending a majority of labour laws in the state for three years

swarajyamag.com

 

[Nikhil]

This country is officially a banana republic now. I expect a major social upheaval in future....condition were already pathetic with contractual jobs + poor and stagnant wages and working conditions. now you can hire and fire without any punitive action. corporate bosses and rich shareholders should rejoice while poor and workers should expect a hell for themselves and there families.

 

[Nikhil]

Even minimum wages act is suspended lol. First make sure through covid -19 to destroy poor people financially.....Then make them desperate to find work and when they do find work in organised sector. make sure they work in pathetic condition with no minimum wages for next 3 years 72 hours a week no question asked and no punitive action if they are exploited or die during work.
and if you challenge that you are anti national and must go to Pakistan. Did I get this right ? @Ashwin @Milspec @screambowl @Milspec @_Anonymous_ @BlackOpsIndia

 

[Milspec]

Even minimum wages act is suspended lol. First make sure through covid -19 to destroy poor people financially.....Then make them desperate to find work and when they do find work in organised sector. make sure they work in pathetic condition with no minimum wages for next 3 years 72 hours a week no question asked and no punitive action if they are exploited or die during work.
and if you challenge that you are anti national and must go to Pakistan. Did I get this right ? @Ashwin @Milspec @screambowl @Milspec @_Anonymous_ @BlackOpsIndia

No,
There has never been any assertion from anyone against policy decisions to be deemed "Anti-National". The media has played shit like go to pakistan by nobody's in the ruling coalition up to the hilt. I have often even defended the right of people to say things like tukde tukde slogans as freedom of speech. The first budget that this govt presented on 2nd term was heavily criticised, no one was deemed anti-national.
On labor law and tax reforms, I am not qualified enough to speak on, but quite sure there are no repercussions on challenging it. Just bare in mind this is an unprecedented situation, we have never had to deal with a situation like Covid 19 before.

 

[Nikhil]

No,
There has never been any assertion from anyone against policy decisions to be deemed "Anti-National". The media has played shit like go to pakistan by nobody's in the ruling coalition up to the hilt. I have often even defended the right of people to say things like tukde tukde slogans as freedom of speech. The first budget that this govt presented on 2nd term was heavily criticised, no one was deemed anti-national.
On labor law and tax reforms, I am not qualified enough to speak on, but quite sure there are no repercussions on challenging it. Just bare in mind this is an unprecedented situation, we have never had to deal with a situation like Covid 19 before.

this is not an unprecedented situation that you have to justify removing 96 labour laws including minimum wages act , workers safety and other act and forcing desperate poor people to work 72 hours a week for 3 years in deplorable conditions without any questions asked.... are we using Covid-19 as an excuse to going back to slavery for the benefit of few rich people and corporate shareholders ? Look like we are. I hope SC turn this order down and take both UP and MP govt to task.

 

[Ashwin]

UP Govt Finalises Ordinance Suspending Major Labour Laws In State For Three Years To Attract Investment
The Yogi Adityanath government has finalised an ordinance suspending a majority of labour laws in the state for three years.

This is an attempt to help both existing and new industrial units in the state.

The recommendations regarding the labour laws were finalised by a group of ministers comprising labour minister Swami Prasad Maurya and MSME Minister Sidharth Nath Singh.

The state cabinet has cleared the Uttar Pradesh Temporary Exemption from Labour Laws Ordinance, suspending more than 30 labour laws in the state.

Chief minister Yogi Adityanath had said recently that Uttar Pradesh would amend labour laws to attract new investments, especially from China.

A government spokesperson said, "The economic activities in the states have been severely affected and slowed down due to the outbreak of Covid-19. This is because businesses and economic activities came to a halt more or less due to the national lockdown."

According to sources, there are more than 40 kinds of labour laws in the labour department, some of which are now redundant. About eight of them are being retained under the ordinance.

These include the Bonded Labour Act of 1976, Employee Compensation Act of 1923 and Building and Other Construction Workers' Act of 1996.

Provisions of laws pertaining to women and children, like the Maternity Act, Equal Remuneration Act, Child Labour Act and section 5 of the Payment of Wages Act which states that wages of a person earning less than Rs 15,000 a month cannot be deducted are also being retained.

Other labour laws like those related to settling industrial disputes, health and working conditions of workers and trade unions, contract workers and migrant workers will be frozen for three years.

By freezing the existing laws, owners of factories have been given more powers to hire and fire without attracting punitive measures from the labour department up to a certain limit.

The new ordinance also prevents the enforcement wing from raiding the premises of factories on minor issues.

Labour minister Swami Prasad Maurya said that suspension of the laws would help in setting up of new industries and ease problems of existing ones at a time when the Covid-19 lockdown had dealt a severe blow to the economy.

"The laws will apply to both existing businesses and new industries. We have made sure that labourers do not suffer or are taken advantage of but we also had to remove any additional burden on the industrialist," he said.

Since labour is a concurrent subject, states can frame their own laws but will need the approval of the Centre to enforce them.

Therefore, the ordinance will also be sent to the Central government for approval.

UP Govt Finalises Ordinance Suspending Major Labour Laws In State For Three Years To Attract Investment

The Yogi Adityanath government has finalised an ordinance suspending a majority of labour laws in the state for three years

swarajyamag.com

I don't get this. Why cant they amend the bills or create new in lines of the centre's? What purpose does it serve in 3 years? New companies will have to relocate after that?


Status of the bills :

Status of Labour Reforms

1. The Code on Wages - Passed
2. Code on occupational safety health and working conditions - Introduced In Lok sabha (Review ongoing by standing committee)
3. Industrial relations code bill - Introduced In Lok sabha
4. Social Security bill - Cabinet Approval

Cabinet approves 4th labour code on social security - Times of India
Govt introduces Labour Code on Industrial Relations bill in Lok Sabha
The Code on Occupational Safety, Health and Working Conditions Bill, 2019 Introduced in Lok Sabha Today

 

[Nikhil]

I don't get this. Why cant they amend the bills or create new in lines of the centre's? What purpose does it serve in 3 years? New companies will have to relocate after that?


Status of the bills :

This is not for three years but an excuse to make it permanent and by the way are you justifying this move ?

 

[BlackOpsIndia]

Why is minimum wages act suspend? Not that it was implemented or anyone paid minimum wages out of fear of act but why remove even the very notion?

Even governments don't pay minimum wages, they enjoy contractual labour to bypass this.

 

[_Anonymous_]

Most welcome move.I just hope the SC doesn't over rule this move .

 

[vstol Jockey]

These changes in labour laws are very much needed. I can say it with lot of conviction that the present laws force us to hire less number of people and extract much more from them. This leads to exploitation of manpower. If we do not have these draconian laws, we can hire more people and those people will have better lifestyle compared to those who are subjected to these laws.

 

[Nikhil]

These changes in labour laws are very much needed. I can say it with lot of conviction that the present laws force us to hire less number of people and extract much more from them. This leads to exploitation of manpower. If we do not have these draconian laws, we can hire more people and those people will have better lifestyle compared to those who are subjected to these laws.

Than why minimum wages act was removed?

 

[Tatvamasi]

Why is minimum wages act suspend? Not that it was implemented or anyone paid minimum wages out of fear of act but why remove even the very notion?

Even governments don't pay minimum wages, they enjoy contractual labour to bypass this.

Minimum wage laws are often counter productive in law income countries.

Does a Minimum Wage Help Workers? – IMF Finance & Development Magazine | March 2019

Does a minimum wage help workers? In this explainer, we discuss why an overly generous wage may prompt employers to cut jobs.

www.imf.org

Why minimum wage won’t fix India’s woes

Instead of a universal national wage standard, the centre has created another complicated structure like the GST

www.livemint.com

 

[Ashwin]

https://twitter.com/x/status/1258604940580225024

 

[vstol Jockey]

Than why minimum wages act was removed?

Minimum wages act does not take into consideration the overall financial situation of a person. A man/woman might agree to work at a lower salary to make up for the deficit in their income. This acreates a win-win situation for the employee and the employer.

 

[RISING SUN]

India moves big labour law changes to limit coronavirus impact; UP, MP, Punjab, others make these changes
The coronavirus-led crisis in India has made many states to ease labour laws in order to give a fillip to the economy and attract more investment. After Madhya Pradesh CM Shivraj Singh Chouhan announced relaxation in its labour laws, Yogi Adityanath’s Uttar Pradesh government has come up with a mega amendment in its labour laws. The latest move by the UP government has exempted businesses from the purview of almost all the labour laws for the next three years. The laws that are relaxed include those related to settling industrial disputes, occupational safety, health and working conditions of workers, and those related to trade unions, contract workers, and migrant labourers.

However, Building and Other Construction Workers Act, 1996; Workmen Compensation Act, 1923; Bonded Labour System (Abolition) Act, 1976; and Section 5 of the Payment of Wages Act, 1936 (the right to receive timely wages), will remain intact for both the existing businesses and the new factories being set up in the state. The state government’s statement said that the decision is taken in the wake of losses incurred to businesses and economic activities.

State-wise details of amendments in labour laws:

Madhya Pradesh: CM Shivraj Singh Chouhan announced to abolish the requisite to fill 61 registers and 13 returns, instead only one register and the return will be sufficient to take license. He also allowed overtime of up to 72 hours and the period of working shifts in factories to increase from 8 hours to 12 hours. In another major relaxation the state government said that there will be no inspection in the firms employing less than 50 workers and in the small and medium enterprises, the inspection will take place only with the permission of the labour commissioner or in case of complaint.

Uttar Pradesh: Yogi Adityanath-led government defunct the labour laws (except three laws and one provision) for the next three years to provide a cushion to the sagging businesses and factories in the state. Now, the industrial units will also not have to worry about inspection or enforcement officials knocking on their doors as they would not be looking if the labour laws are implemented.

Rajasthan: Apart from raising the working hours from 8 hours per day to 12 hours per day, the state has amended Industrial Disputes Act to increase the threshold for lay-offs and retrenchment to 300 from 100 earlier. In order to recognise the trade union, the threshold membership of the trade union has been increased from 15 per cent to 30 per cent.

Maharashtra: All the shops and factories are asked to submit consolidated annual returns instead of multiple returns under various labour laws.

Kerala: Chief Minister Pinarayi Vijayan had said if the investor agrees to complete formalities in a year, the state government would facilitate new industrial licence within a week after the application is filed.

Punjab, Himachal Pradesh and Gujarat: These three states have also amended their Factories Acts in the last month to increase the work time to 12 hours every day and 72 hours every week, compared to 8 hours every day and 48 hours every week.

India moves big labour law changes to limit coronavirus impact; UP, MP, Punjab, others make these changes

The latest move by the UP government has exempted businesses from the purview of almost all the labour laws for the next three years.

www.financialexpress.com

 

[Nikhil]

Minimum wages act does not take into consideration the overall financial situation of a person. A man/woman might agree to work at a lower salary to make up for the deficit in their income. This acreates a win-win situation for the employee and the employer.

you are not fooling me with you mumbo jumbo and whataboutery. Let's stick to topic shall we. minimum wages act guarantee a minimum wage to skilled and unskilled workers, does that mean people are getting minimum wages ? Not everyone but most already are even in unorganised sector where majority of people are employed. even in organised sector most companies are keeping workers at minimum wage for maximum profit.
Now BJP has scrapped even that act. poor person on dire need of money due to covid-19 crisis will have no other choice but to work on amount decided by employer. Who may pay him below the prescribed amount guaranteed by the act and there will be no repercussion or action against the employer.
Now who benefit the most from all this we all know and it ain't workers but big corporation and rich shareholders. These is slavery legalized in a biggest democratic banana republic called India. @BlackOpsIndia

 

[vstol Jockey]

you are not fooling me with you mumbo jumbo and whataboutery. Let's stick to topic shall we. minimum wages act guarantee a minimum wage to skilled and unskilled workers, does that mean people are getting minimum wages ? Not everyone but most already are even in unorganised sector where majority of people are employed. even in organised sector most companies are keeping workers at minimum wage for maximum profit.
Now BJP has scrapped even that act. poor person on dire need of money due to covid-19 crisis will have no other choice but to work on amount decided by employer. Who may pay him below the prescribed amount guaranteed by the act and there will be no repercussion or action against the employer.
Now who benefit the most from all this we all know and it ain't workers but big corporation and rich shareholders. These is slavery legalized in a biggest democratic banana republic called India. @BlackOpsIndia

I have just one question for you. What forced the flight of jobs to economies outside USA? AND do those countries have anything like minimum wages act?

 

[BlackOpsIndia]

Minimum wages act does not take into consideration the overall financial situation of a person. A man/woman might agree to work at a lower salary to make up for the deficit in their income. This acreates a win-win situation for the employee and the employer.

Minimum wage is applicable to establishments having 1000 employees. Don't you think any establishment employing 1000 workers will be big enough to pay wages that can barely keep the employee out of poverty?

It was a joke, a cruel one as governments themselves didn't obey it while hiring. For this one Act government has endangered whole ordinance as they will get a good dressing down in court room in coming days.