Labour Law Exemption - Uttar Pradesh

‘Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020

The Uttar Pradesh government has approved an ordinance exempting businesses from the purview of almost all labour laws for the next three years in a bid to provide a fillip to investments affected by the novel coronavirus in the state.

The ordinance will become law only after it receives the president’s assent.

“The horticultural and economical activities in the states have been severely affected and slowed down due to the outbreak of COVID-19. This is because businesses and economic activities came to a halt more or less due to the national lockdown,” a press statement issued by the state government said. The decision was taken in a meeting of the state cabinet, chaired by Chief Minister Adityanath on Wednesday.

The statement said that the government has cleared the ‘Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020’ to exempt all establishments, factories and businesses from the purview of all, but four labour laws and one provision of another Act, for a period of three years.

Labour Law Exemption - Uttar Pradesh

 “To bring economic activities back on track, new industrial investments opportunities will have to be created, the state needs to take steps to bring the economy back on track. That is why this step has been taken"

- State Government Representative

By the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020, the Uttar Pradesh Government has suspended key labour laws for three years to encourage investment and to boost the economy in the COVID -19 circumstances.

Apart from following labor laws, all other laws shall be suspended for three years

1. Bonded Labour System (Abolition) Act, 1976;
2. Employee Compensation Act, 1923 :- (statutory liability upon an employer to discharge his moral obligation towards employees when they suffer from any physical disabilities or diseases, during the course of employment in hazardous working conditions)
3. Building and Other Construction Workers Act, 1996 (safety, health and welfare measures); and
4. Section 5 of Payment of Wages Act, 1936 (ensure timely payment of daily wages)

Status of the laws after passing of the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020

Central Laws
1	Apprentices Act 1961
2	Beedi and Cigar Workers Act 1966
3	Cine Workers and Cinema Theatre W. Act 1981
4	Contract Labour Act 1970
5	Dookan Aur Vanijya Adhisthan Act 1962
6	Equal Remuneration Act 1976
7	Factories Act 1948
8	Industrial Disputes Act 1947
9	Industrial Employment Act 1946
10	Maternity Benefit Act 1961
11	Minimum Wages Act 1948
12	Motor Transport Workers Act 1961
13	Payment of Bonus Act 1965
14	Payment of Gratuity Act 1972
15	Payment of Wages Act 1936	APART FROM SEC 5 THE ENTIRE ACT SHALL BE SUSPENDED
16	Public Liability Insurance Act 1991
17	Sales Promotion Employees Act 1976
18	The Indian Boiler Act, 1923
19	Trade Unions Act 1926
20	Weekly Holidays Act 1942
21	Working Journalists Employees Act 1955
22	Dangerous Machines Act 1983
23	Sick Industrial Companies Act 1985

U.P STATE LAWS
1	Contract Labour (Regulation and Abolition) Act, 1970
2	UP Shops & Establishments Act 1962
3	UP Welfare Fund Act
4	UP Industrial Peace (Timely Payment of Wages) Act 1961
5	UP Industrial Housing Act 1955
6	Industrial Establishment (National Holidays) Act 1961
7	UP Industrial Undertakings Special Provisions for Prevention of (Unemployment) Act 1966
8	UP Employment of Substitute Workmen Act 1978
9	UP Sugar & Power Alchohol Industries Labour Welfare & Development Fund Act 1950
RULES
1	Apprentices Rules
2	Beedi and Cigar Workers Rules
4	Child Labour (Prohibition & Regulation) Rules
5	Cine Workers and Cinema Theatre W. Rules
6	Contract Labour Rules
7	Dangerous Machines Rules
8	Equal Remuneration Rules
9	Factories Rules
10	Industrial Disputes Rules
11	Industrial Employment Rules
12	Maternity Benefit Rules
13	Minimum Wages Rules
14	Motor Transport Workers Rules
15	Payment of Bonus Rules
16	Payment of Gratuity Rules
17	Payment of Wages Rules	PARTIALLY SUSPENDED
18	Plantations Labour Rules
19	Public Liability Insurance Rules
20	Sales Promotion Employees Rules
21	Sick Industrial Companies Rules
22	Trade Unions Rules
23	Weekly Holidays Rules
24	Working Journalists Employees Rules

THE UTTAR PRADESH TEMPORARY EXEMPTION FROM CERTAIN LABOUR LAWS ORDINANCE, 2020

(U.P. ORDINANCE NO.- OF 2020)
(Promulgated by The Governor In The Seventy First Year OF The Republic Of India)

AN ORDINANCE

To exempt factories and other manufacturing establishments from application of certain labour laws for a period three years.
WHEREAS the state legislature is not session the Governor is satisfied that circumstances exists which render it necessary for him to take immediate action;
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 213 of the Constitution of India, Governor is pleased to promulgate the following Ordinance:-

CHAPTER-I PRELIMINARY

1- Short Title, extent and Commencement

(1) This Ordinance may be called the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020
(2) It extends to the whole of Uttar Pradesh.
(3) This Ordinance shall come into force on the date of its publication in the Gazette.

2- Definitions

In this Ordinance, unless the context otherwise requires:-
(a) “Factory” means any premises defined as factory in section 2(m) of the Factories Act, 1948.
(b) “Manufacturing” means the process as defined manufacturing process under Section 2 (k) of the Factories Act.
(c) “Minimum wage” means the wage prescribed by the State Government.
(d) “Wages” means all remunerations defined as wages in Section 2 (h) of the Minimum Wages Act, 1948.
(e) “workers” means a person defined as worker in section 2(l) of the Factories Act, 1948.

CHAPTER- II TEMPORARY EXEMPTION AND CONDITIONS THEREOF

3 Temporary Exemption

All factories and establishments engaged in manufacturing process shall be exempted from the operation of all Labour Laws for a period of three years, subject to the fulfillment of the following conditions:
(a) The name and details of all employed workers shall be entered electronically on the attendance register prescribed in section 62 of the Factories Act, 1948.
(b) No workers shall be paid less than minimum wages as prescribed by the UP Government.
(c) The wages to the workers shall be paid within the time limit prescribed under section- 5 of Payment of Wages Act, 1936.
(d) The wages to workers shall be paid only in their bank accounts.
(e) The provisions of Factories Act, 1948 and Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 relating to safety and security of the workers shall remain applicable.
(f) The workers shall not be allowed or required to work for more than eleven hours per day and the spread over of the work shall not be more than twelve hours per day.
(g) For any death or disability due to accident arising out of and in the course of employment compensation shall be paid in accordance with Employees Compensation Act, 1923.
(h) The provisions of the various labour laws relating to the employment of children and women shall remain applicable.
(i) The provisions of Bonded Labour System (Abolition) Act, 1976 shall remain applicable.

4.Consequences for the breach of conditions of exemptions

For any breach of the conditions provided in section-3 action will be taken in accordance with the provisions of existing relevant Acts.

CHAPTER – IV MISCELLANEOUS

5 Power to make rules -

The State Government may, by notification, make rules for carrying out the purposes of this Ordinance.

6 Power to remove difficulties

(1) If any difficulty arises in giving effect to the provision of this Ordinance, the State Government may, by notification, make such provisions, not in consistent with the provisions of this ordinance as appear to be necessary or expedient for removing the difficulty.
(2) Every order made under sub-section (1) shall be laid as soon as may be, before both Houses of the State Legislature.

7 Repeal and Savings -

Notwithstanding anything contained in this Ordinance, the previous operations of various Labour Laws shall not be affected.