The government seems inclined to revise its own stance on the proposed amendments to the Industrial Dispute Act. It is planning to adopt an improved version of the Maharashtra model to be patterned on the suggestions of the National Labour Commission.
The model, however, will be at variance with the amendments approved in principle by the Union Cabinet earlier.
The Cabinet had approved the proposal to allow closure of units with 1,000 employees without permission from the government. The decision to raise the ceiling to 1,000 from 100 had evoked strong criticism even within the government.
The labour commission, on the other hand, has suggested that the ceiling should be raised to 300 to enable employers to close down unviable units without having to seek goverment approval.
The commission has also recommended an increase in the compensation package
