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

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Updated: May 07, 2020 5:34 PM

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.

labour reform, workforce, companies, factories, registration, licenseMP 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.

Also Read: Privatisation enters agri market: For the first time, farmers will have option other than govt

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.

Also Read: Modi’s petrol, diesel excise duty bazooka has no firepower; won’t save govt’s dwindling tax revenue

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.

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