The proposed changes is expected to ease the labour law burden on most of the existing factories by freeing them from complying with the numerous provisions of the Act that relate to safety, working conditions and welfare of the employees, as well as filing lengthy compliance reports to the government.
The original Act identifies a factory based on the number of workers employed. At present, units where power is used for manufacturing must employ 10 workers or more in a year to be identified as a factory, while units that do not use power must employ at least 20 workers in a year.
The original Act identifies a factory based on the number of workers employed. At present, units where power is used for manufacturing must employ 10 workers or more in a year to be identified as a factory, while units that do not use power must employ at least 20 workers in a year.
Under the proposed amendment, the minimum number of workers in a factory is sought to be doubled to 20 for units with power and 40 for non-power units. State governments will be empowered to prescribe the number of workers up to this limit that a unit must employ to be defined as a factory
But trade unions as well as experts are opposing the amendment, arguing that it could lead to greater violations by factories.
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