Bhubaneswar: In a significant move to promote ease of doing business and attract fresh industrial investments, the Odisha Cabinet on Monday approved major amendments to the Factories Act, 1948, as applicable within the state.
The reforms aim to enhance labor flexibility, improve industrial productivity, and generate more employment opportunities.
The decision is aligned with the deregulation priorities identified by the Cabinet Secretariat, Government of India, and is expected to create a business-friendly environment conducive to rapid industrialisation.
The key amendments approved are as follows:
- Extended Working Hours: The State Government may allow working hours of up to 10 hours per day, while ensuring the weekly limit does not exceed 48 hours, for specific categories or groups of factories.
- Continuous Work Without Interval: Workers may now work up to 6 hours without a break, under specific conditions to be notified by the State Government.
- Increased Spread Over: The total working spread, including rest intervals, can be extended to 12 hours in a day, subject to state notification and compliance conditions.
- Overtime Compensation: In line with sections 51, 54, 55, and 56 of the Act, workers exceeding prescribed daily or weekly hours shall be entitled to double wages for overtime work.
- Exemptions for Adult Workers: Rules may be framed under Section 64 to exempt adult workers from certain restrictions, with conditions including:
- Maximum 12 working hours per day
- Maximum 13 hours spread over per day (including rest)
- Weekly working limit, including overtime, capped at 60 hours
- Increased Overtime Cap: The quarterly overtime limit has been increased from 115 hours to 144 hours.
- Employment of Women in All Shifts: Women may now be employed in all types of factory work, including between 6 am and 7 pm, with their written consent and subject to prescribed safety norms.
These reforms are expected to attract new investments into the state, enable factories to meet peak demand, and enhance productivity. They will also help increase workers’ earnings by allowing more opportunities for overtime work.
