Trade union leaders and experts have criticised the Delhi government’s move to amend at least two labour laws as part of its ‘Ease of Doing Business’ policy, saying the amendments will strip lakhs of workers in the city of several rights.

The first pertains to changing the applicability of the Delhi Shops and Establishments Act, 1954, to establishments with 10 or more employees. Currently, the Act, which includes several safeguards for employees, such as leaves, weekly holidays, and a month’s notice for dismissal, is applicable even to establishments with one employee.

The government is also planning to amend the Industrial Disputes Act, 1947, which protects workers in cases of lay-offs and closure of units employing 100 or more workers, by raising the minimum threshold of employees to 300.

Directions were issued to senior officials at a review meeting on June 30, chaired by Lieutenant-Governor V.K. Saxena and attended by Chief Minister Rekha Gupta, to make these changes, said a source. However, the government is yet to release any official statement on the matter.

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