In an aim to boost ease of doing business in the State of Karnataka, the Government in a recent Ordinance ‘Industrial Disputes and Certain Other Laws (Karnataka Amendment) Ordinance, 2020 (“Ordinance”)’ dated 31st July, 2020 has brought about amendments to the following Act/s:
• Industrial Disputes Act, 1947
• Factories Act, 1948
• Contract Labour (Regulation and Abolition) Act, 1970
The Ordinance has gained effect since 31st July, 2020.
1. Amendment to Industrial Disputes Act, 1947 in its application to Karnataka:
a. Increase in threshold for applicability of provisions of lay off, retrenchment and closure – The special provisions of lay off, retrenchment and closure will now apply only to establishments with minimum 300 workmen (earlier 100).
b. Increase in threshold of applicability of provision related to closure to establishments of seasonal character – The threshold for applicability of this provision has been increased to 300 (earlier 100). Therefore, the establishment with seasonal character has to have minimum 300 workmen for the provision becoming applicable on them.
2. Amendment to Factories Act, 1948 in its application to Karnataka:
a. Applicability: Factories using power and employing 20 workers (increased from 10) and factories not using power and employing 40 workers (against 20) will be covered under the Act.
b. Over time: The total overtime hours a worker can work in a quarter has been increased to 125 hours from the earlier 75 hours.
3. Amendment to Contract Labour (Regulation and Abolition) Act, 1970 in its application to Karnataka:
Applicability- The applicability threshold of the Act has been increased to establishments where 50 or more are employed (against earlier 20 or more).
Source: Government of Karnataka
