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Odisha labour reform: Exempts small firms from Factories Act, hikes firing limit

city New Delhi India covid-19 pandemic Government
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NEW DELHI: Odisha has amended its key labour laws, exempting a sizable portion of small factories from the purview of Factories Act, 1948, and has allowed companies with up to 300 workers to fire people or close down units without prior approval of the government, a threefold increase from the current threshold in the Industrial Dispute Act, 1947.

The state has also exempted small companies employing up to 50 workers from complying with the Factories Act. Currently, the Act covers all factories using electricity and having 10 workers and all factories without using electricity and having 20 workers.

This among other things will end inspection and verification of premises of all factories with a headcount of less than 50 and ease rules

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