New Delhi, October 14: An Assam government bill proposing to allow companies to retrench up to 300 employees without seeking prior approval of the government has received the presidential assent and it will help achieve the objective of ease of doing business, officials said Sunday.
President Ram Nath Kovind approved The Industrial Disputes (Assam Amendment) Bill, 2017, that will replace the Industrial Disputes Act, 1947. It is aimed at pushing the ease-of-doing-business mantra of the government.
The statement of objects and reasons of the legislation says companies will be allowed to retrench up to 300 employees instead of 100, as per the existing legislation, without seeking prior approval of the government.
The amendment seeks to achieve the objective of ‘ease of doing business’ thereby encouraging positive business environment in the state, a home ministry official said quoting the bill.
Under the new legislation, the compensation to a retrenched labourer will be 60 days’ salary instead of the present 15 days’ and no government permission will be required for the retrenchment.
The President has also given assent to the Motor Vehicles (Haryana Amendment) Bill, 2018 that authorises the state transport undertaking to operate any vehicle on any route as stage carriage under any permit.
The bill has been passed to rationalise the rate of interest charged under the Haryana Motor Vehicles Taxation Act, 2016 and to reduce the same from 1.5% per month to 1% per month that is 12% per annum. (PTI)