Uttar Pradesh invokes ordinance to exempt businesses from all key labour laws

New Delhi: The Uttar Pradesh government has brought in an ordinance exempting companies from complying with almost all labour laws except three acts for the next three years to boost investment and help resurrect businesses hit hard by the covid-19 pandemic.

The state cabinet has cleared the “Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020” to exempt all establishments, factories and businesses from the purview of all, but three labour laws and a section of another act, a statement of the UP government said.

“The covid-19 pandemic has impacted economic activities and industrial activities badly. Because of which the workers welfare has also got a hit. To bring the economic activities back on track, new industrial investments opportunities will have to be created and old industrial activities need to be given a boost,” the state government said in a statement.

It has become a necessity to provide temporary reprieve from labour laws for new industrial investment, for establishing new industries, and for existing industries in the current situation, the state government said.

The move is likely to invite wider criticism as it will give a free hand to businesses to operate the way they wish and boost hire and fire rules at a time job security and wage security issues are facing a bigger challenge.

With this the state will have three active laws -- Building and Other Construction Workers Act, 1996, Workmen Compensation Act, 1923, Bonded Labour Act, 1976 and Section 5 of the Payment of Wages Act, 1936. The section 5 of the payment of wages act relates to the right to receive timely wages by employees.

All other Acts including Industrial Disputes Act, Factories Act, Trade Union Act etc. will not be in vogue for next three years.