To attract foreign investment into the state’s manufacturing sector, the Tamil Nadu Assembly on Friday passed the Factories (Amendment) Act 2023 to provide flexible working hours for factory employees.

The move also comes on the heels of several multinational companies seeking flexible working hours for their proposed manufacturing plants in the state. Tamil Nadu is the centre of major manufacturing companies and has the largest number of factory and industrial workers.

However, while the bill was being discussed on the last day of the assembly session, the state assembly witnessed protests and strikes by leftist parties, Congress and Viduthalai Chiruthaigal Katchi (VCK).

State Industries Minister Thangam Thennarasu said the amendment had considered the status quo worldwide as Tamil Nadu has become a global investment destination. “This move will create new jobs, especially for women, and it is only applicable to certain industries such as electronics, non-leather footwear and electronics clusters,” he said.

According to him, for workers who can now choose to work a four-day week with three days off, the total hours worked in the week will remain the same. “This will greatly benefit female workers,” he said. The government said the remaining three days would be paid leave, with existing leave, overtime and wage rules remaining unchanged. Action will be taken against factories that force employees to work against their will.

Section 127 of the relevant Central Code enables the State Government to, by notification, inter alia, provide for flexible working hours, including overtime and spread-over hours, including rest intervals, subject to such conditions and restrictions and for such period as deemed fit, in respect of any factory or class of factories, said the bill introduced by CV Ganesan, State Minister for Labor Welfare and Skill Development.

“The said Central Code has not yet been enforced by the Government of India, and for the benefit of the workers and industry, to provide flexible working hours in factories, the State Government has decided to amend the Factories Act, 1948 (Central Act 63 of 1948) to apply in this state,” The bill said.

A Sakthivel, president of the Federation of Indian Export Organisations (FIEO), called the passing of the bill by Parliament, which seeks to include 12-hour flexible working, historic.

Sakthivel said the statutory provision of flexible working hours had brought many benefits to the country, the workers, especially female employees, and the economy.

Flexible working hours, including overtime and spread-out hours, included in 13 labour laws, will help develop better safety, health and working conditions in addition to better pay for workers in the state. He said the state government’s move would help create many jobs.

The reform will attract more national investment and help the export industry address compliance-related issues in major markets. Sakthivel said workers often raised the need for flexible working hours, especially those from light industries, as it would help them get better pay.

The Tirupur Exporters’ Association (TEA) welcomed the bill to increase working hours. It said flexible labour laws would help meet foreign buyers’ compliance in overtime as buyers insist on land law, and it has now been changed according to industry requirements.

Opponents of the change say it could extend the mandatory working hours to 12 hours from the current eight.