Amending the Industrial Disputes Act, 1947 to compel industries to compensate retrenched workers for 45 days instead of the existing 15 days is contrary to the central law and could become counterproductive to the state’s plan to attract investment to Goa.
Across India, industrial establishments in the rest of the country are obligated to compensate workers at the rate of 15 days wages for every year of service, industries in Goa will now have to pay for 45 days. Industry leaders are of the opinion that this will deter investors from setting up fresh industrial units in Goa. Industry associations are also concerned over the ability of financially weak MSMEs to compensate retrenched workers at a higher rate.
Last month, the department for labour and employment had issued an ordinance to amend the Industrial Disputes Act to relax certain clauses and increase the retrenchment compensation in order to improve ease of doing business in Goa.
Chairman for Confederation of Indian Industries, (CII) – Goa, Blaise Costabir, says that in the unfortunate event if a company has to retrench workers in Goa, it will be more expensive and this will deter the investor from coming to Goa.
The Centre has already passed a bill on the Industrial Relations Code amalgamating Industrial Dispute Act along with other labour laws. The Centre has maintained compensation at 15 days wages per completed years of service.
Goa Chamber of Commerce and Industry President, Manoj Caculo stated that they have requested the Government to withdraw or suspend or let the relevant portion of the Industrial Disputes (Goa Amendment) Ordinance, 2020 lapse so as to attract and retain industries and help to ease doing business in Goa.
The Industrial Disputes Amendment bill is expected in the coming one-day monsoon assembly session.
Damodar Kochkar, GSIA President says that instead of passing the bill in a hurry, a meeting of the labour advisory committee has to be called. This committee comprises of people from the industry, labour unions and government.
