As a part of ease of doing business, the state government has proposed labour reforms in the Industrial Disputes Act to ease the closure of factories without any hassles of retrenching the labourers in the state. According to the officials from the labour department, any factory having more than 100 employees requires government permission for closure. Now, it has proposed to increase that number to 300 in the Industrial Disputes Act. It has also proposed to add a new section in the Act for raising any dispute related to retrenchment or dismissal from service within three years only. At present, there is no such bar on raising the dispute and can be raised at any time.
Besides, it has also proposed that factories would not require any prior permission of the government for closure if the employers pay sixty days average pay for every completed year of continuous services at the time of retrenchment. Currently, there is no such provision in the Act. It also proposes to increase the compensation to be given to retrenched labourers by three times.