BHUBANESWAR: In order to facilitate investment, generation of employment and counter the hardships caused to MSMEs due to Covid-19 pandemic by creating a more conducive and business friendly atmosphere, the State Government has decided to bring in several labour reforms by amending the Factories Act 1948.
A proposal in this regard was approved at a meeting of the Cabinet presided over by Chief Minister Naveen Patnaik.
As per the amendments approved by the Cabinet, the threshold for factories has been increased to 50 with or without the aid of power from existing 10 (with power) and 20 (without power).
However, the provisions of the Factories Act will remain intact for factories with hazardous manufacturing processes.
The non-hazardous factories employing 20 or more workers but less than 50 will require one-time registration on intimation.
Such factories will be exempted from payment of fees, approval of plan, renewal of licence and regular inspection except on receipt of complaint or in the event of accident by filing self-certification and annual return.
However, provisions related to safety, health and welfare measures will remain intact.
While overtime limit has been increased from 75 hours to 115 per quarter, engagement of women workers has been allowed with consent between 7 pm and 6 am in factories subject to condition that adequate safety, welfare, security measures and safeguards as prescribed are taken by the factories concerned.
Besides, reduction has been made in the number of days for which a worker has to work in factory for allowing him leave with wages in the subsequent year from existing 240 days to 180 days.
Besides, to protect the interest of workers, amendment of Industrial Disputes Act, 1947 has been approved which provides prior two months notice or pay in lieu of notice for retrenchment for establishments where 100 and more but less than 300 are employees.
The amendment also seeks to increase the threshold from 100 to 300 workers.