Goa has strict labour laws: Economic Survey of India
Updated: Jul 08, 2019 10:34:43am
Goa has strict labour laws: Economic Survey of India
Panaji, 8 July (KNN) In the index of labour reform, Goa is classified as an ‘inflexible’ state and kept in third from the bottom in the published Economic Survey of India 2018-19.
Goa got 16 points against 20, an average score in labour responsiveness which states Goa’s score in labour responsiveness as below average.
The index is based on findings from 21 states.
The gained score points out that the state’s responsiveness to changing economic environment is poor.
It is just ahead of Chhattisgarh and West Bengal which have got the bottom ranks and generally termed as among the worst places for doing business.
The survey states that “Flexible states get more investment and thus grow faster. In contrast to this, employers substitute labour with the capital in states with strict labour laws”.
The government is trying to amend the Factory Act by permitting the night shift for women on the shop floor. If it gets approved, in the upcoming monsoon session of the state assembly, it will be the first major revision in labour laws in recent years.
Eight legislations are covered under the labour reform index which is the Industrial Dispute Act 1947, the Factories Act 1948, State Shops and Commercial Establishment Act, Contract Labour Act 1970, the role of inspectors, maintenance of registers, filing of returns and union representation. Apart from this, other states like, Assam, Jharkhand, Kerala, and Bihar are classified as inflexible. In all thirteen states are categorized as flexible with Uttar Pradesh topping the index.
The analysis concludes, “States that have made changes in the labour laws and transited towards more flexible labour markets are more productive in terms of output per factory. To be progressive on the shop floor, Rajasthan has amended the IDA Act, The Factories Act and the Apprentice Act. Amendments in industries in Rajasthan do not need government nod for companies employing up to 300 workers or for retrenching, laying off or shutting down units. Earlier, it was limited up to 100 workers”.
Rajasthan has also revised its Factories Act and increased the threshold limit to 20 or more from earlier 10 or more. To encourage the growth of skill among youths, the stipend for an apprentice is fixed at no less than minimum wage. Other than this, the Government has to bear a part of the cost of apprentice training. The number of apprentices per factory is predetermined by the government.