Odisha Brings Labour Reforms To Attract More Investments

The ongoing lockdown has left its impact on all sectors of the economy, with the Medium, Small and Micro Enterprises (MSMEs) being hit the hardest. To facilitate a gradual recovery of these crippling industries, and the economy as a whole, the central government recently announced a stimulus.

Meanwhile, the Odisha Government has decided to bring in several labour reforms by amending the Factories Act 1948 to facilitate investment, generation of employment, and counter the hardships caused to MSMEs in the state. The proposal in this regard was passed in a meeting chaired by Chief Minister Naveen Patnaik.

The amendment made in the Factories Act during the cabinet meeting is mentioned below:

– The threshold for factories is increased to 50 (with or without the aid of power) from the existing 10 (with power) and 20 (without power). However, these provisions will remain unchanged for factories with hazardous manufacturing processes.

– The non-hazardous establishments employing 20 or more workers but less than 50 will require one-time registration on intimation. These factories will be exempted from payment of fees, approval of the plan, renewal of license, and routine inspection except on receipt of complaint or in the event of an accident by filing self-certification and annual return.

– Subject to conditions of adequate safety, welfare, security measures, and safeguards as prescribed under the law, the overtime limit has been increased from 75 hours to 115 hours per quarter in factories.

– The appointment of women workers has been allowed with consent between 7 pm and 6 am.

– The number of days for which a worker has to work for allowing him leave with wages in the subsequent year has been reduced from the existing 240 days to 180 days.