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Labour laws liberalised
By Our Special Correspondent

NEW DELHI, FEB. 22. In a major move to implement radical labour reforms, the Union Cabinet today gave its approval to changes in the labour law to make it easier for employers to resort to closure or lay-off in economically unviable private establishments.

Ignoring the opposition from trade unions, the Cabinet, at its meeting, approved of the proposed changes in the Industrial Disputes Act which will liberalise the provision relating to prior Government permission for a closure or lay-off by an employer, as was being demanded by the trade and industry and other protagonists of economic reforms for quite some time.

Once the proposed amendments in the Industrial Disputes Act, 1947 - which will be moved during the coming budget session - are accepted, an employer who has up to 1000 workers on the rolls will have the freedom to close his establishment or lay-off or retrench the staff without seeking the Government's permission.

(At present, such permission is needed if there are more than 100 workers).

Incidentally, workers' compensation in the eventuality of a closure or retrenchment is sought to be made stiffer to prevent the abuse of the provision.

Instead of 15 days wages for every completed year of service, 45 days wages as separation compensation have been proposed.

However, the Government has thus far stopped short of approving changes in the Indian Contract Labour Act to permit hire and fire of labour. It is still part of the Government's reform agenda.

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