After Uttar Pradesh, Gujarat Guv Acharya Devvrat approves ordinance to exempt firms from nearly all labour laws

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After Uttar Pradesh, the Gujarat government has passed an ordinance to give new firms set up in the state an exemption of over three years from nearly all the labour laws, Business Standard has reported.

The report, quoting a state government official, says that the ordinance received the approval of the Gujarat Governor Acharya Devvrat earlier this week. President Ram Nath Kovind's assent is now awaited, it added.

Under the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020, all manufacturing units in the state will be exempt from all labour laws for a period of three years, provided they fulfil certain conditions.

Read More | Uttar Pradesh Governor approves changes in labour laws, ordinance sent to President

However, unlike UP, the ordinance passed by the Gujarat government seeks to grant the exemption to all new manufacturing and service sector firms set up in the state. Barring the Minimum Wages Act, the Employee Compensation Act and safety-related rules in factories, no other labour laws will be applicable to these firms, as per the report.

The UP government's ordinance, which was approved by Governor Anandiben Patelon May 14, also awaits presidential assent, after which it comes into effect as a law.

Labour falls under the concurrent list in the Constitution, which means any amendments to existing laws introduced by the state need to have the Centre’s approval as well.