Chandigarh proposes changes in labour laws

The UT Administration has proposed amendments to the labour laws to streamline compliance, reduce regulatory burdens and foster a business-friendly ecosystem while prioritising worker welfare. According to officials, the proposed amendments have been submitted to the Ministry of Home Affairs. These are aimed at enhancing the ease of doing business.

To further empower the business community and enhance Chandigarh’s competitiveness, the Administration has proposed various amendments under Section 87 of the Punjab Reorganisation Act, 1966, drawing inspiration from Punjab and Haryana’s progressive models. The proposed amendments include the Factories Act, 1948 (Extension of Haryana Amendment Act, 2018; the Contract Labour (Regulation & Abolition) Act, 1970 (Extension of Punjab Amendment Act, 2020); the Industrial Disputes Act, 1947 (Extension of Punjab Amendment Act, 2020); and the Industrial Disputes Act, 1947 (New Amendment for Chandigarh).

The officials said that these proposed reforms were designed to create an investor-friendly environment by reducing operational costs with higher thresholds and simplified regulations, particularly for small and medium enterprises. The amendments are aimed enabling businesses to respond effectively to market fluctuations and promoting inclusivity.