News: Businesses in UP exempt from all but three labor laws for three years

Employee Relations

Businesses in UP exempt from all but three labor laws for three years

Only the Building and Other Construction Workers Act, 1996, Workmen Compensation Act, 1923, Bonded Labour Act, 1976 and Section 5 of the Payment of Wages Act, 1936 (the right to receive timely wages) will apply in the entire state. All the other labor laws will become defunct.
Businesses in UP exempt from all but three labor laws for three years

Uttar Pradesh Chief Secretary RK Tiwari shared in a press report that the idea is to provide employment to workers who have migrated back to the state and to protect the existing employment, some flexibility has to be given to business and industry.

The horticultural and economical activities in the states have been severely affected and slowed down due to the outbreak of COVID-19. As most economic activities came to halt in March when the lockdown in the country started, businesses and industries have suffered quite a lot. The Uttar Pradesh government has hence approved an ordinance exempting businesses from the purview of almost all labour laws for the next three years to provide a fillip to investments affected by the novel coronavirus in the state.

However, the government also had to ensure labor welfare and that their rights are protected. Keeping labors' interests in mind some of the labour laws have been kept intact, which will act in the welfare of the workers and the government said “they will continue to be protected”. The laws that will apply in the state include Building and Other Construction Workers Act, 1996, Workmen Compensation Act, 1923, Bonded Labour Act, 1976 and Section 5 of the Payment of Wages Act, 1936 (the right to receive timely wages).

The ordinance will be sent for the approval of the central government. Since labor is a concurrent subject under the Constitution of India, the states can frame their own laws but they still need the approval of the central government. The decision has only come from one of the states of the country but as the lockdown continues and businesses find more and more difficult to cope, would more states take similar steps? 

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Topics: Employee Relations, #COVID-19

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