What Are The Changes Proposed By Chandigarh In Labour Laws?

One of the major proposals in Chandigarh labour laws includes increasing the quarterly overtime limit from 75 to 125 hours, offering businesses greater flexibility to meet production demands.

The proposed changes have been submitted to the Ministry of Home Affairs.

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The Chandigarh Administration has proposed a series of amendments to key labour laws aimed at reducing regulatory burdens, enhancing ease of doing business, and fostering an investor-friendly ecosystem, while continuing to prioritise worker welfare.

According to officials, the proposed changes have been submitted to the Ministry of Home Affairs under Section 87 of the Punjab Reorganisation Act, 1966, taking cues from progressive amendments already adopted by Punjab and Haryana.

Key Proposed Amendments In Labour Laws

The changes cover multiple legislations, including:

• Factories Act, 1948 (Extension of Haryana Amendment Act, 2018)
• Contract Labour (Regulation & Abolition) Act, 1970 (Extension of Punjab Amendment Act, 2020)
• Industrial Disputes Act, 1947 (Extension of Punjab Amendment Act, 2020)
• Industrial Disputes Act, 1947 (New Chandigarh-specific Amendment)

One of the major proposals includes increasing the quarterly overtime limit from 75 to 125 hours, offering businesses greater flexibility to meet production demands.

Further, the proposal seeks to introduce compounding of offences to allow resolution of minor legal violations without lengthy litigation, saving time and resources for enterprises.

Raising Applicability Threshold For Contract Labour Regulations

To ease compliance for smaller firms, it suggests raising the applicability threshold for contract labour regulations from 20 to 50 workers and for industrial dispute provisions from 100 to 300 workers, aligning with reforms already in place in Punjab.

Another significant change proposed is amending Section 22 of the Industrial Disputes Act to include all industrial establishments under the definition of "public utility service," helping reduce disruptions in industrial operations.

The reforms also promote gender inclusivity by allowing women to work night shifts, thereby expanding workforce participation and addressing skill shortages.

"These reforms aim to create a dynamic business environment in Chandigarh by lowering operational costs, streamlining legal processes, and enhancing overall industrial competitiveness," a UT spokesperson said.