E-Paper
New labour reforms in the offing: Chandigarh seeks to improve business environment
The proposals have been submitted to the Union ministry of home affairs under Section 87 of the Punjab Reorganisation Act, 1966
In a major initiative to enhance the ease of doing business, the Chandigarh administration has proposed a series of transformative labour reforms, aligned with the vision of the Union ministry of labour and employment. These reforms aim to position Chandigarh as a competitive industrial and commercial hub by simplifying regulatory processes while safeguarding worker welfare.
The proposals have been submitted to the Union ministry of home affairs under Section 87 of the Punjab Reorganisation Act, 1966. Inspired by progressive models adopted in Punjab and Haryana, the amendments seek to streamline compliance procedures, reduce regulatory burdens, and foster a more business-friendly ecosystem.
Among the proposed reforms are: Factories Act, 1948 (Haryana Amendment Extension); Raises the applicability threshold from 10 to 20 workers (with power) and from 20 to 40 (without power), increases the quarterly overtime limit from 75 to 125 hours, introduces compounding of minor offences to avoid prolonged legal proceedings, allows women to work night shifts with enhanced safety measures.
Contract Labour (Regulation and Abolition) Act, 1970 (Punjab Amendment Extension): Increases the threshold from 20 to 50 workers, easing compliance for small and medium enterprises (SMEs), Industrial Disputes Act, 1947 (Punjab Amendment Extension) and raises the threshold from 100 to 300 workers. Amends the definition of ‘public utility service’ to include all industrial establishments, ensuring smooth operations.
The department, in its communication, stated that these reforms are expected to reduce compliance costs, improve operational flexibility, promote workforce diversity, and attract higher investments. The Chandigarh administration aims to establish the city as a benchmark of industrial efficiency and inclusive growth in North India.
The department also noted that several key reforms have already been implemented, including fixed term employment, women in night shifts, and the adoption of a compliance-first approach, all designed to foster a cooperative and progressive industrial environment.
