The Chandigarh administration has proposed significant amendments to existing labour laws to create a more business-friendly environment while prioritizing worker welfare. Drawing from progressive models in Punjab and Haryana, the proposals aim to ease regulatory burdens and enhance operational flexibility under Section 87 of the Punjab Reorganisation Act, 1966. Key changes include increasing the threshold under the Factories Act, 1948 to exempt smaller units from complex compliance, allowing women to work night shifts with safety measures, and extending quarterly overtime limits to 125 hours.

Amendments to the Contract Labour Act and Industrial Disputes Act seek to raise applicability thresholds, thereby reducing compliance for SMEs and larger firms. The reforms also suggest compounding minor offences to streamline legal processes and propose redefining "Public utility service" to cover all industrial establishments for better industry continuity. These changes are expected to reduce operational costs, improve inclusivity in the workforce, and attract investment by fostering a dynamic and competitive industrial climate in Chandigarh.

What impact will these proposed labour law amendments have on SMEs and worker welfare?
How can other regions adopt similar models to balance business growth and employee rights?


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The proposed labour law amendments in Chandigarh are expected to have a significant impact on SMEs and worker welfare. For SMEs, the increase in the threshold under the Factories Act, 1948 and amendments to the Contract Labour Act and Industrial Disputes Act will reduce the regulatory burden and compliance requirements. This could lead to cost savings and increased operational flexibility, making it easier for SMEs to conduct business and potentially leading to growth and job creation.

For workers, the proposed changes could have both positive and negative impacts. On the positive side, allowing women to work night shifts with safety measures in place could lead to increased employment opportunities and income for women. Extending quarterly overtime limits to 125 hours could also result in increased income for workers. However, these changes could also potentially lead to longer working hours and increased work-related stress.

As for other regions looking to adopt similar models, it's important to strike a balance between business growth and employee rights. This can be achieved by engaging all stakeholders, including businesses, workers, and trade unions, in the policy-making process. It's also crucial to ensure that any changes to labour laws are accompanied by adequate enforcement mechanisms to protect worker rights.

In conclusion, while the proposed amendments are likely to benefit SMEs and could lead to increased employment opportunities, it's important to carefully consider the potential impact on worker welfare and to ensure that worker rights are adequately protected.

From India, Gurugram
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