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Labour Law Reforms
Notification from Directorate of Industries, Government of Maharashtra June 2000

The Factories Act, 1948:

  • Amendments in the Definition of "Factory"
  • Small Establishments with power and employing upto 25 workers without power and upto 50 workers be exempted

Trade Unions Act, 1926:

  • Trade Union should not be affiliated to Political Parties
  • There should be one Union per Company
  • 7 or more workers combine to form a Union. It is recommended that the minimum number of workers should be increased to 25 or 30 per cent of the work force, whichever is higher.
  • It is also recommended that Under Section 22, the Executive Body of such Union should comprise outsiders not exceeding 1/3rd or 2 persons whichever is less.
  • Rationalization of the provisions with regard to lay-offs and retrenchments, if necessary with enhanced retrenchment compensation should be considered
  • The minimum number of workers Under Section 25(K) should be increased from 100 to 300.
  • Section 25 (N) should contain the following proviso -

"Notwithstanding anything contained in the foregoing provisions of this Section, the provisions of this Section will not apply to any workman who has been in continuous service for not less than one year under an employer and at the time of retrenchment paid compensation which shall be equivalent of 45 days average pay for every completed year of continuous service or any part thereof in excess of six months".

Minimum Wages Act,1948:

  • Minimum Wages should be fixed for unskilled temporary workers. For other categories, they will get higher wages as per their skills and market demand.
  • The number of schedules under the Act should be reduced, and only the lowest scale of minimum wages (i.e., for unskilled workers) should be stipulated in these schedules.


  • Visits by Inspectors of various agencies under the Labour Department would be rationalised as follows:
  • There would be no restriction on the conduct of statutory inspections (which may to the extent possible, be conducted jointly by the different inspectional agencies), and in the case of accidents.
  • In the case of inspections based on complaints or information received, prior approval from the concerned GMDIC would be necessary. In case of disagreement, or when GMDIC is not available approval may be taken from the Collector.
  • In the case of inspections for collection of statistics, Labour Department may examine the possibility of collection of statistics on a trial basis through selected local associations or outside agencies.
  • In the case of technical inspection, the possibility of authorizing technical agencies such as VJTI, VRCE etc. may be examine and an approved list drawn up.
  • For all Boiler Inspections, reputed technical Organizations should be empowered to conduct such inspections.

Contract Labour (Regulation and Abolition) Act, 1970

  • The Act should be amended to increase the number of workers in the definition of applicability to 50, subject to further relaxation to the extent of a minimum 100 workers in respect of units in backward areas.

Maharashtra Trade Union (MRTU) & Prevention of Unfair Labour Practices (PULP, 1971) Acts :

  • It is suggested that these Acts be tally abolished as the required purpose is being efficiently served with the use of the industrial disputes Act, 1947.




Labour Law Reforms

Notification from Directorate of Industries, Government of Maharashtra June 2000