As per Special Economic Zones (SEZs) Act and Rules framed thereunder, the Central Government shall have no authority to relax any law relating to the welfare of the labour in the SEZs. All Labour laws are applicable in Special Economic Zones. The rights of the workers/labour are therefore protected under the SEZs Act. Ongoing review and reform, as necessary, of Government policy and procedure is inherent to Public Policy. The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZ policy.

 This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

Labour law applicability in SEZs: welfare protections remain fully enforceable and central government cannot relax labour laws. Labour law applicability in Special Economic Zones is reaffirmed: laws relating to the welfare of labour remain fully applicable within SEZs and the Central Government has no authority to relax those welfare protections under the SEZ legal framework. The Government also conducts periodic policy and operational reviews, based on stakeholder inputs, to facilitate effective implementation of the SEZ scheme.