Context
With labour law reforms back on the Centre’s agenda, fresh discussions begin with trade unions today to push through a long-pending overhaul of the Factories Act of 1948
Tweaking its draft amendment
Labor ministry has tweaked its draft amendment bill
- State governments will decide: Instead of increasing the threshold limit set for the number of workers in an industrial unit to be statutorily covered by the factories law, the Centre is now proposing an enabling provision that lets State governments decide the threshold over which a unit will be considered a factory for the purpose of the law
Modification of the definition
- The definition of factory is proposed to be modified as in the original Bill by giving powers to the State governments to increase the threshold limit of workers up to 20 and 40 for factories working with and without the aid of power respectively
- Present situation: The present Factories Act 1948 applies to establishments with 10 or more workers, if the premise is using power and to establishments with 20 or more workers, without electricity connection
