There has been an accelerating trend over the last years towards a dilution of necessary labour laws in India. The economic downturn in the wake of the COVID-19 pandemic has given states an excuse to overhaul them without reason or process. This is a compilation of resources relating to the suspension of labour law regulations in India in 2020 as on 16th May, 2020.
Labour Law Changes During COVID-19 Pandemic in India
1. Winnu Das: winnudas@gmail.com
A compilation of information and resources on suspension of labour law regulations
in India in 2020 as on 16th
May, 2020
There has been an accelerating trend over the last years towards a dilution of necessary labour laws in
India. The economic downturn in the wake of the COVID-19 pandemic has given states an excuse to
overhaul them without reason or process.
The Central trade unions consider the current changes a violation of the ILO
convention on Fundamental Principles and Rights at Work which was adopted by India in 1998.
They are considering approaching the ILO regarding this matter. [https://wap.business-
standard.com/article-amp/economy-policy/labour-law-changes-in-india-should-adhere-to-global-
standards-ilo-120051301663_1.html] and are planning a strike
[https://www.firstpost.com/health/trade-unions-to-go-on-strike-on-22-may-to-protest-against-labour-
laws-suspension-seek-immediate-relief-to-stranded-workers-8372381.html].
Increases in working hours are not as per the Factories Act provisions and also violate the ILO Hours
of Work Convention to which India is a signatory (https://www.indiatoday.in/news-
analysis/story/coronavirus-lockdown-labour-reforms-migrant-workers-1678324-2020-05-15)
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This article [https://scroll.in/article/961555/the-need-for-labour-reforms-must-not-be-conflated-with-
complete-deregulation?fbclid=IwAR1WKk2kGWgEL_JLAWkegiyRHHK-
brSbshmO7mvVuQZ0AA7411uoiGFsRhM] maps some of these changes to violations of
fundamental rights.
1. Non-payment of minimum wage is a violation of Article 23 (it is forced labour);
2. Work without safe and decent conditions is a violation of Article 21.
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There is currently a PIL in the Supreme Court against the measures taken by the Gujarat, Madhya
Pradesh and Uttar Pradesh governments. This PIL argues that the suspension of the laws was an
illegal use of section 5 of the Factories Act. [https://www.firstpost.com/india/coronavirus-outbreak-
pil-filed-in-sc-against-gujarat-up-and-mp-govts-decision-to-exempt-industrial-units-from-labour-
welfare-law-8369181.html]
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The Uttar Pradesh Government passed the Uttar Pradesh Temporary Exemption from Certain
Labour Laws Ordinance, 2020 [Only in
Hindi: http://information.up.nic.in/attachments/CabinetDecisionfile/7c223b50d3fdc5a2c4a53863012e
d0b0.pdf]. It has been sent for Presidential approval (which is necessary since it restricts the
application of central level labour laws). This ordinance seeks to suspended all labour laws except:
1. Bonded Labour System (Abolition) Act, 1976;
2. Employee Compensation Act, 1923
Building and Other Construction Workers Act, 1996
3. Section 5 of Payment of Wages Act, 1936: This section is about the timely payment of wages.
However, it means little given that there is no minimum wage.
All other laws have been suspended including those on minimum wages, bonus and gratuity,
maternity benefits, industrial disputes and union action such as strikes (Industrial Disputes Act), union
2. Winnu Das: winnudas@gmail.com
registration, operational health and safety (Factories Act), working hours (Factories Act), child labour
prohibition, contract labour, inter-state migrant workers, equal remuneration.
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The Gujarat Government has passed an Ordinance that would exempt all new businesses from most
labour laws for 1200 days. The new firms will be exempt from all labour laws, except the Minimum
Wages, Act, the Employee Compensation Act and safety-related rules in factories.
The Ordinance is awaiting the approval of the President. [https://www.business-
standard.com/article/economy-policy/gujarat-s-labour-law-exemption-ordinance-sent-for-president-s-
assent-120051501486_1.html]
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The Madhya Pradesh government:
1. Has suspended the state act on Industrial Relations [page
9 https://prsindia.org/files/covid19/notifications/4989.MP_exemptions%20under%20labour%20laws_
May05.pdf.] for 11 sectors: textile, leather, cement, iron and steel, electrical goods and sugar,
electricity, public motor transport, engineering, including manufacturing of motor vehicles. This Act
provides for recognition of Representative Unions and protections for employees who
strike. [https://indiacode.nic.in/bitstream/123456789/12745/1/the_madhya_pradesh_industrial_act_19
60%2Cno.27_of_1960_date_31.12.1960.pdf]
2. Has exempted new establishments from the Industrial Relations Act [the provisions relating to
retrenchment, closing down and the penalties for both] for the 1000 days [page
7: https://prsindia.org/files/covid19/notifications/4989.MP_exemptions%20under%20labour%20laws
_May05.pdf]
3. Suspended safety regulations at factories for three months
4. Modified the Contract Labour licences [page
3: https://prsindia.org/files/covid19/notifications/4989.MP_exemptions%20under%20labour%20laws
_May05.pdf]
5. Suspended inspection for factories with less than 50 workers. [page
5 https://prsindia.org/files/covid19/notifications/4989.MP_exemptions%20under%20labour%20laws_
May05.pdf.]
[On the changes in Madhya Pradesh: https://clllnujs.wordpress.com/2020/05/15/demystifying-the-
changes-to-labour-laws-in-states-madhya-
pradesh/?fbclid=IwAR0XWa1E9kk07kgNwVs6GQod_GGXCBy0KmRQJcrBU4uxhoHV7yiGT2Za
LLQ]
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PRS India [https://www.prsindia.org/theprsblog/relaxation-labour-laws-across-states] has written an
article on the changes across states.
3. Winnu Das: winnudas@gmail.com
Working Hours [taken from PRS India]
State Establishments Maximum weekly
work hours
Maximum
daily work
hours
Overtime Pay Time period
Gujarat All factories Increased from 48
hours to 72 hours
Increased from
9 hours to 12
hours
Not required
[wages to be
paid in
proportion:
ex.Rs. 80/8hrs
then Rs.
120/12hrs]
Three months
Himachal
Pradesh
All factories Increased from 48
hours to 72 hours
Increased from
9 hours to 12
hours
Required Three months
Rajasthan All factories
distributing essential
goods and
manufacturing
essential goods and
food
Increased from 48
hours to 72 hours
Increased from
9 hours to 12
hours
Required Three months
Haryana All factories Not specified Increased from
9 hours to 12
hours
Required Two months
Uttarakhand
[Order is in
Hindi only]
All factories and
continuous process
industries that are
allowed to function
by government
Maximum 6 days
of work a week
Two shifts of
12 hours each.
Required Three months
Uttar
Pradesh
All factories Increased from 48
hours to 72 hours
Increased from
9 hours to 12
hours
Not Required Three months
This was suspended after a notice by the Allahabad High Court.
[https://www.news18.com/news/india/up-govt-withdraws-controversial-order-of-12-hour-
shifts-for-industrial-unit-workers-after-notice-from-allahabad-hc-2622415.html]
Madhya
Pradesh All factories
Not specified Not specified Not specified Three months
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There are also issues relating to data security and privacy of workers due to employers making the
Aarogya Setu app mandatory [https://www.article-14.com/post/what-to-go-back-to-work-download-
aarogya-setu]. Section 13 of the The Personal Data Protection Bill, 2019
[https://www.prsindia.org/sites/default/files/bill_files/Personal%20Data%20Protection%20Bill%2C%
202019.pdf] allows employers to process and hold information about employees and this may have
some issues as well.