Says this is the right time to amend and fine-tune the rules as per new requirements and simplify them to attract to MP the industries to be shifted from other places.


Madhya Pradesh Chief Minister Shivraj Singh Chouhan has announced major labour reforms to boost industrial activities for increasing job opportunities, encourage fresh investments and safeguard interests of labourers.

Chief Minister Chouhan said that the long lockdown period has slowed economic activities. The situation is returning to normal and Madhya Pradesh has also resumed economic activities. However, in the changed circumstances, old industries are considering to relocate, whereas new ones are giving priority to places having favourable conditions.

Chouhan said: “We have to convert this challenge to an opportunity. The state government has, therefore, amended the Mandi Act, providing to farmers options like selling their produces from their homes, and produce selling in the mandis…Similar reforms for industries were long awaited. We intend to augment job opportunities for people of the state. We have to invite investments in the state. MP has ample resources like water, land, forests and skilled youth power. This is the right time to amend and fine tune the rules as per new requirements and simplify them to attract to MP the industries to be shifted from other places.”

Registration/Licence in one day

Earlier, registrations/licences under the different labour laws were issued in 30 days. Now it will be done in one day.  The process of issuing registration/ licences for factories, shops, contractors, bidi manufacturers, motor transport workers and Madhya Pradesh Bhavan Tatha Sannirman Karmkar Adhiniyam will be completed in one day. A provision has been made for renewal of factory licence renewal in 10 years instead of one year.

Under the Contract Labour Act, the licence will be issued for entire contract period instead of the calendar year. For start-ups, provision has been made for one-time registration and the provision for renewal has been done away with.

Timings for Opening of Shops Increased

Presently, shops can remain open from 8 in the morning till 10 at night. Now the Shops and Establishment Act has been amended to change the timings from 6 in the morning to 12 o’clock. This significant amendment will create new job opportunities and there will be no overcrowding in shops.

Increase in Shifts, Overtime

The duration of shifts in factories during the period of Covid pandemic has been increased from 8 hours to 12 hours.

Permission for overtime up to 72 hours in a week has also been granted. During the extra hours, workers will be entitled to overtime as per rules. A notification under the Factory Act has already been issued.

Single Register, Single Return

With a view to simplifying the procedure for work of factories, provision has been made to maintain a single register instead of 61 registers under labour laws and to file a single return instead of 13 returns. Self-certification will suffice to file the return.

Exemption from Various Inspections

Under the Factory Act, exemption has been given to factories for factory inspection for a period of three months. The employers will be allowed to have third party inspection of the factory by inspectors of their choice.

Earlier, the registration of third party inspectors was done in Mumbai, but now the Labour Commissioner of Madhya Pradesh has been authorised to do the needful. Establishments employing less than 50 workers have been excluded from inspection in various labour laws.

Decline in labour disputes, judicial proceedings

The provisions of the Madhya Pradesh Industrial Relations Act have been relaxed till further orders. Now in factories, trade unions and factory manager will be able to resolve disputes as per their convenience. They will not have to go to the Labour Court for resolving disputes.

Exemption in selection and aapointment of workers

To invite new industries and investors in the next 1,000 days, all provisions except Section 25 of the Industrial Disputes Act have been relaxed.

Now, industry owners will be able to select workers as per their convenience. In industries where less than 100 labourers work, exemptions have been given from provisions of Madhya Pradesh Industrial Employment (Permanent Order) Act. Now, most MSME industries will be able to hire labourers as per their requirement. The Industrial Employment Act law was applicable to establishments with over 50 workers.

It has been extended and applied to establishments with over 100 workers. Under Factory Act, units which run without power had to be registered on employing 20 labourers. Now, a proposal has been sent to the Centre to remove the limit on number of workers. Small units will get freedom from registrations under the Factory Act.