Mumbai: In an attempt to improve the ease of doing business, the Maharashtra government plans to exempt new startups from inspections relating to key labour laws for a period of three years. This follows the Centre’s move to relax labour law compliance for startups.

The laws include the Contract Labour (Regulation and Abolition) Act, 1970; the Building and Other Construction Worker’ (Regulation of Employment and Conditions of Service) Act, 1996; the Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; and the Payment of Gratuity Act, 1972.

The new norms will apply to startups with an annual turnover of less than Rs 25 crore that have registered less than five years ago. Over 98,000 startups will be able to avail of the changed norms, officials say.

In the first year, the startups will be exempted from inspections relating to these labour laws. In the second and third years, inspections will take place only after a written complaint is received. This will not apply to startups involved in hazardous businesses. Also, if those availing of the exemption are found to have violated labour laws, they will face action and the exemption will be withdrawn.

A government resolution announcing the changed norms is expected to be issued shortly.

Trade unions are unhappy with the latest changes. “This will erode worker’s rights further. As it is, more than 90% of workers are in the unorganized sector and are denied the protection of the bulk of labour laws,” said Sanjay Wadhavkar from the Hind Mazdoor Sabha.

Exemptions from inspections in the Contract Labour Act and Building and Construction Workers Act will impact workers says Vivek Monteiro from the Centre of Indian Trade Unions. “These laws govern working conditions, the payment of the minimum wage and accident insurance,” he pointed out.

Source: Times of India