Karnataka government brings labour hiring reforms

Karnataka government is set to amend labour rules to facilitate smoother functioning of MSME companies during fluctuating fortunes of many MSMEs. The amendments also allow more overtime (OT) hours for workers as well as to employ workers on a contract basis.

The changes are being made in Industrial Disputes Act, Contract Labour Act as well as in Factories and Boilers Act. The regulations earlier required MSMEs to seek government permission to layoff, retrench and close down units if they had 100 employees. Now, the cap has been revised to 300 employees.

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