The labour law changes initiated in Uttar Pradesh (UP) and Madhya Pradesh (MP) are steps that will give huge flexibility to industry in their labour practices, according to industry body CII.
"Coming at such disruptive times, when livelihoods have come under pressure and multitudes of people have had to move away from their work places, these new policy interventions will come as a huge relief to economic activity," Chandrajit Banerjee, director general, Confederation of Indian Industry (CII) said.
Banerjee also said that there is a need to re-skill and map workers who have been displaced and re-employ them as per the needs of the industry.
"The ordinance in UP and the new relaxations in the norms in MP will give industry the adapt and rise to the new economic realities swiftly," Banerjee said.
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With the economic impact of the coronavirus pandemic gradually unfolding, the Madhya Pradesh government on May 7 granted companies various concessions to meet labour requirements during this period.
It gave flexibility to companies to hire and fire employees, exemptions from labour department inspections, exemptions from maintenance of registers, and has allowed extended shift timings.
This was followed by the Uttar Pradesh government approving an ordinance on May 8 to exempt various industries in the state from different labour laws for three years to revive the state's economic activities.
The ordinance exempts factories, businesses, establishments and industries from the purview of all, except three labour laws and one provision of another Act for three years.
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