Tamil Nadu amends Factories Act to allow flexible working hours for factory workers

Amid protests from political parties, including allies of the ruling DMK, the Tamil Nadu Assembly on Friday passed the Factories (Amendment) Act 2023, which paves the way for providing flexible working hours for desirable employees in factories of select sectors identified by the government.

The parties objected to the Bill, saying that the “flexible working hours” would stretch the mandatory working hours to 12 hours from the present 8 hours of duty, and hence, the Act should not be notified. Industries Minister Thangam Thennarasu clarified that the total working hours in a week remains 48, and an option would be provided to workers who are willing to work for 12 hours a day (four days) and take off the remaining three days.

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CPI(M), CPI, VCK, and Congress legislators called the move “anti-labour” and “pro-industry”, while the DMK members supported the Bill.

The flexible working hours, once it comes into force, will be a boost to electronics manufacturers like Foxconn and Pegatron, involved in assembling high-end Apple iPhones. Both Foxconn and Pegatron have pledged to invest additionally in their Chennai plants as Apple makes a shift from China. Another Apple supplier, Luxshare, is also likely to begin operations in Chennai very soon.

Thennarasu said the amendment would only apply to industries like electronics and non-leather shoe-making, most of which are from Taiwan and other Asian countries.

Labour Minister C V Ganesan told the Assembly that the government brought the Bill after it received representations from various industries and industrial associations.

As per the statement of objects and reasons stated in the Bill, section 127 of the Central code enabled the state government by notification to provide, among others, flexible working hours, including overtime and spread over hours inclusive of rest intervals, subject to such conditions and restrictions and for such period as deemed fit in relation to any factory or class of factories.

“The bill will immensely help women workers,” Thennarasu said while handing out an assurance that the government will ensure that the employees’ rights are not compromised at any cost. Ganesan said the Bill was the need of the hour for the state, which has the highest number of factories.

Officials who were involved in drafting the Bill said the idea was to provide flexible work time to workers by the employer through a mutually agreeable model.

“The Bill clearly says the factories that can implement this flexible working hours system will be specifically notified. We have applied our mind to choose the industries, unlike making it across the board. For instance, any factory that implements this system will have to be fully air-conditioned,” an official said.

Another official said the flexibility in working hours was much needed as Tamil Nadu is now competing with south-east Asian countries in clinching deals from investors.

“This is how select factories function in countries like Malaysia, Indonesia, and Singapore. We need to be flexible when we aspire to be a manufacturing hub. And most importantly, we are not forcing anyone,” the official added.

The first official said the flexible working hours were a “progressive measure” as it balances the interests of both the employee and the employer. “Since we plan to specifically choose the sectors, the enforcement will also be better. This is a well-considered and well-thought-out move which satisfies both,” the official said.