Mumbai, May 4 (KNN) In a move that would give flexibility to the units to adjust the number of workers employed according to the market conditions, Maharashtra government is planning to bring back a crucial amendment related to laying off workers or shutting units in the Industrial Disputes Act.

According to a media report, the amendment will allow companies employing up to 300 workers to lay them off or shut down a plant without first seeking the state’s consent.

Currently, only companies employing up to 100 workers are allowed to lay off workers without seeking the state government’s approval.

The Federation of Indian Micro and Small & Medium Enterprises (FISME) said reform in labour laws would be a welcome move.

“To encourage employment and make industries competitive it is imperative to reduce barriers and bring down cost of employment,” said FISME President, Dinesh Chandra Tripathi.

Rajasthan was the first state to amend the provision in 2014 itself.

Maharashtra Government had planned to bring the amendment in 2015 as well, but faced opposition from Shiv Sena and Bhartiya Mazdoor Sangh. There was fear that the move would lead to massive job losses in the state. (KNN Bureau