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Ambarish Mukherjee

New Delhi , Sept. 30

THE Government is planning to amend the Industrial Disputes Act to increase the compensation for laid-off workers. Simultaneously, it is working on a proposal to keep out units employing up to 300 workers from the purview of the Act.

The plan is to increase the compensation package for laid-off workers to 45 days of salary for every year served against the existing provision of 15 days' salary for every year served.

Simultaneously, in order to provide flexibility to small and medium enterprises, the Government intends to keep out all units employing up to 300 workers from the ambit of the Industrial Disputes Act. As of now, all units employing more than 100 workers come under the purview of the Act and require prior permission from the Government before laying off workers. After the proposed amendment, units employing up to 300 employees will not require prior Government approval for laying off workers.

Consultation with TUs, States: Preliminary consultations have been conducted with the Central trade unions, which have opposed the reduction in the number of covered units.

The Union Government has now initiated the process of consultation with the various State Governments.

The erstwhile National Democratic Alliance (NDA) Government spearheaded by the BJP too had initiated moves to amend the ID Act and increase the compensation for laid off workers.

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