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Industrial Disputes (Gujarat Amendment) Bill, 2020 gets Presidential Nod

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Guj amendment to Industrial Disputes Act gets presidential nodOn January 1, 2021, The Industrial Disputes (Gujarat Amendment) Bill, 2020, which was passed in the state Assembly on September 22, 2020 received the presidential assent. The amendments ensured that the interests of workers are protected.

  • The aim of the amendment is to increase ease of doing business by reducing the compliance burden on industries and inclusion of industry-friendly policies. It will aid in attracting new industries and investments to create more employment opportunities.

Key Amendments:

Current Scenario: As per Industrial Disputes Act 1947, establishments having 100 or more workers are required to seek prior permission of the state government before effecting layoff, retrenchment, or closure.

  • Amendment: Employee Limit raised to 300.

Current Scenario: In case of layoffs, workers are required to be paid compensation amounting to 15 days salary for every year of service.

  • Amendment: Workers will also get an amount equivalent to the average pay of the last 3months as compensation

Current Scenario: Workers needed to be given three months’ notice or wages for the notice period before retrenchment.

  • Amendment: Workers can be retrenched after giving them three months’ notice only.

Additional reforms:

–As the Industrial Disputes Act is a Central law, any change that states want to make must require an approval of the president.

–Gujarat has passed more ordinances in the Assembly on the Contract Labour Act, Factory Act and Child act, and they are also expected to be approved soon.

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About Gujarat:

Chief Minister– Vijay Ramniklal Rupani

i.Gujarat is the state with longest coastline in India

ii.World’s tallest statue, Statue of Unity is located in Gujarat Ports in Gujarat

iii.Largest Private port in India, Mundra Port is located near the Gulf of Kutch

iv.Kandla port, renamed as Deendayal Port Trust is a Special Economic Zone(SEZ)