NEW DELHI, Oct 14 - President Ram Nath Kovind has signed the Industrial Disputes (Assam Amendment) Bill, 2017 that will replace the Industrial Disputes Act, 1947 paving the way for companies to retrench up to 300 employees without seeking prior approval of the Assam Government.
The Assam Government Bill has received the Presidential assent and it will help achieve the objective of ease of doing business, officials sources said on Sunday.
The Bill envisages boosting ease-of-doing-business. The legislation proposes that 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� salary and no government permission will be required for the retrenchment.
It may be mentioned that on September 7, 2017, the Assam Legislative Assembly passed the Bill by a majority decision. The Bill was passed amid vocal opposition from Congress MLA Sherman Ali Ahmed, who staged a walkout after his demand for a division on the Bill was rejected by the Speaker.
The Statement of Objects and Reasons of the legislation states that �The salient feature of the Act is to amend the Industrial Disputes Act, 1947, raising the threshold on number of employees from 100 to 300 to allow retrenchment of employees without seeking prior approval of the government...�
