Under the Factories Act of 1948, the states can invoke special powers which could be used during an emergency, to make changes in the law. This special power has been used by many states to suspend or amend the labour law for a short or medium time period.
Which state is doing what:
Gujarat: The new order permits working hours to be made 12 hours as against 8 hours earlier in this state. Unlike states like Rajasthan and Punjab, workers in Gujarat will not be paid extra for working overtime. The notification stated if wages for eight hours are Rs 80, then the proportionate wages for 12 hours will be Rs 120. In addition, the state does not permit women employees to work from 7 pm to 6 pm, as per the new notification.
Himachal Pradesh: As per the order, for the next three months, working hours has been increased to 12 hours as against 8 hours earlier. But it states that overtime compensation has to be given. A business cannot force a worker to work for six hours continuously without any break. The state government has not changed its rule in minimum wages though.
Madhya Pradesh: Businesses employing 20 contractors or more had to register as per the Contract Labour Act. But now that limit has been increased to 50. So, businesses employing less than 50 need not register. This is expected to have a negative impact. However, there is no doubt that there are some changes that might work in the favour of the state but not following health and safety measures will have a cascading effect. As per the notification, permitted working hours will be 12 hours as against 8 hours earlier. However, the state government has asked establishments to compensate workers who wish to work overtime.
Punjab: Under section 65 of the Factories Act 1948, which gives the government special power, the government in Punjab exempted factories for three months from certain provisions of the Act. As per the notification, the working hours are extended from 9 hours to 12 hours for the next three months. However, during this overtime, workers shall be provided wages at the rate of twice the ordinary rate of wages as provided for overtime.
Rajasthan: In the wake of the pandemic, the government decided to extend the working hours up to 12 hours for the next three months. However, the government has asked businesses to pay the workers for that extra four hours. The government is doing this to increase the production of essentials as the workers will be working in a limited capacity to maintain social distancing.
Uttar Pradesh: Under Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020, the state suspended all labour laws related to labour unions, settling work disputes, regulations for working conditions, etc for three years. However, laws against bonded labour, workmen compensation and the right to receive timely wages will continue to prevail.
