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ASSOCHAM seeks changes in labour laws
PTI - New Delhi

Criticising the report of the second National Labour Commission, ASSOCHAM has sought changes in the existing labour laws stating that the report had overlooked the realities of the competitive era through which the industry was passing.

The report, the chamber said, did not effectively and squarely deal with the strategic areas needing labour reforms. ASSOCHAM said that reportedly the commission has recommended raising the threshold limit under the Industrial Disputes Act for exemption from 100 to 300 employees beyond which the government’s approval will be needed for resorting to retrenchment, lay off and closure.

This will not bring flexibility in the existing labour laws in adjusting manpower requirement, ASSOCHAM said in a statement. Even the Ahluwalia Task Force had in its recommendations felt that no threshold limit be proposed, it said adding Onkar Goswami committee had also made similar observations. It is unfortunate that the commission has not given adequate weightage to these recommendations, it said.

The commission has recommended raising the retrenchment compensation to 60 days wages for every year of service from the present 15 days overlooking the existing recommendation of the group of ministers for 45 days compensation. This will take the running/operational organisation to the brink of sickness particularly in medium and small scale sector companies, it said.

Meanwhile, the Associated Chambers of Commerce and Industry has asked the International Labour Organisation to exercise caution in interpreting restrictions on work stoppages in essential services as “forced labour” as this would hamper economic growth in developing countries in the backdrop of present global economic trends.