GUWAHATI: In a major labour reform, Assam has enacted the Industrial Disputes (Assam Amendment) Bill, 2017, which authorises employers to retrench up to 300 employees without seeking approval of the government. The statement of objects and reasons of the legislation states, “the salient feature of the Act is to amend the Industrial Disputes Act, 1947, raising the threshold on number of employees from 100 to 300 to allow retrenchment of employees without seeking prior approval of the government.” The amendment seeks to “achieve the objective of ‘ease of doing business’ and thereby encouraging positive business environment in the state.”
Assam assembly passed the bill by a voice voteon Thursday. Congress MLA, Sherman Ali Ahmed walked out of the House after his demand for a division on the bill was not allowed. Ahmed had sought an amendment and suggested that instead of increasing the threshold limited it should be reduced to 50. Minister for labour and employment Pallab Lochan Das argued that the bill has not been enacted to facilitate retrenchment of employees, but deals with issue of closure. “Government of India and Assam are taking steps to protect the security of workers.”