Press Information Bureau
Government of India
Ministry of Labour & Employment
Government of India
Ministry of Labour & Employment
28-November-2014 16:47 IST
Lok
Sabha Passes the Labour Laws (Exemption from Furnishing Returns and Maintaining
Registers by Certain Establishments) Amendment Bill, 2014
The
Lok Sabha has passed the Labour Laws (Exemption from Furnishing Returns and
Maintaining Registers by Certain Establishments) Amendment Bill, 2014 today.
The Union Minister of State for Labour and Employment (Independent Charge), Shri Bandaru Dattatreya said that the Bill is a social security measure. It simplifies procedures regarding engaging labours. The main purpose of bringing the Bill is transparency, accountability and proper enforcement. He said the EPF Universal Account Number will be a major benefit as it affords portability, transparency and efficiency. He asserted that the Government was not at all compromising on the interest of workers and the legislation was not meant to give exemption to any establishment.
The
Bill, as amended, proposes to change some of the provisions of the original Act
of 1988 to increase the number of laws under which small establishments is
exempt from furnishing returns and maintaining registers from nine to 16. It
amends the definition of “small” establishments to cover units employing
between 10 to 40 workers as against the limit of 19 workers at present.
Earlier,
the Bill was passed by Rajya Sabha on November 26, 2014.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO 147
ANSWERED ON 24.11.2014
AMENDMENTS TO LABOUR LAWS
147 . Jayadevan Shri
C. N., Kodikunnil Shri Suresh
Yadav Shri Dharmendra, Ram Mohan Naidu Shri Kinjarapu
Shrirang Shri Chandu Barne, Patil Shri Shivaji Adhalrao
Saraswati Shri Sumedhanand, Bhuria Shri Dileep Singh
Yadav Shri Dharmendra, Ram Mohan Naidu Shri Kinjarapu
Shrirang Shri Chandu Barne, Patil Shri Shivaji Adhalrao
Saraswati Shri Sumedhanand, Bhuria Shri Dileep Singh
Will the Minister of
LABOUR AND EMPLOYMENT be pleased to state:-
(a) whether the Union Government and also some State Governments
have proposed certain amendments in labour laws;
(b) if so, the details of the proposed amendments proposed by
the Union and the State Governments separately along with the reasons therefor;
(c)the extent to which the proposed changes in the labour laws
are likely to reduced hassles for employers and employees;
(d)whether the Government has also proposed for
self-certification by the employer regarding the safety and security of the
employees and of the people in and around the factory; and
(e)if so, the details thereof?
ANSWER
MINISTER OF STATE (IC) FOR LABOUR AND
EMPLOYMENT
(SHRI BANDARU DATTATREYA)
(a): Yes, Madam.
(b): The details of the amendments proposal by the Union
Government are at Annexure-I.
The details of amendment proposals received from State
Governments for seeking concurrence are at Annexure-II.
(c) to (e): Review/updation of labour laws is a continuous
process in order to bring them in tune with the emerging needs of the economy
after tripartite consultations amongst Government, Employers’ & Employees’
Organizations. While undertaking such changes overall interests of labour like
wages, employment, social security, working environment, health and safety etc.
are protected keeping in view the requirements of the Indian Industry to make
it efficient and internationally competitive. This constitutes an essential
part of labour reforms which essentially means taking steps to increase
production, productivity and employment opportunities in the economy.
The Ministry of Labour & Employment is also proactively
engaged in addressing the issues related to multiplicity of labour laws and the
ease of compliance to promote an enabling business environment.
A single unified Web Portal has been developed for Online
Registration of units, Reporting of inspections, and submissions of Annual
Returns and redressal of grievances. This portal facilitates ease of reporting
at one place for various Labour Laws by a single online annual return;
consolidate information of Labour Inspection and its enforcement thereby
enhancing transparency in Labour Inspection as well as that in monitoring of
Labour Inspections.
Annexure-I
The Child Labour (Regulation & Abolition)
Act, 1986
·
Linking
the definition of child under this Act to that under the Right to Education
Act, 2009,
·
complete
prohibition on employment of children below 14 years and linking the age of the
prohibition with the age under Right to Free and Compulsory Education Act,
·
prohibition
of working of Adolescents in Mines, Explosives and hazardous occupations set
forth in the Factories Act, 1948,
·
More
strict punishment to the offenders and making the offences under the Act
cognizable.
The Factories Act, 1948
·
The
threshold limit for coverage under the Factories Act as defined in Section
2(m), is proposed to be amended to include besides the existing limits of 10
workers (for units with power) and 20 workers (for units without power), units
with such number of workers as may be prescribed by the State Government with a
cap of 20 workers (for units with power) and 40 workers (for units without
power) respectively. This will provide flexibility to the State Governments to
amend their State Law as per their requirements.
·
Amendment of Section 66 of the Act relating to
permission for employment of women for night work for a factory or group or
class or description of factories
with adequate safeguards for safety and provision of transportation till the
doorstep of their residence.
·
Amendment
of Sections 64 and 65 of the Act to enhance the limit of overtime hours from
the present limit of 50 hours per quarter to 100 hours per quarter. The
amendment also proposes this limit to be increased to a maximum of 125 hours
per quarter in public interest with the approval of State Government.
·
Insertion
of provision relating to compounding of certain offences (Section 92 C and new
Fourth Schedule) and amendment of Section 92 of the Act enhancing the quantum
of penalty for offences.
·
The
provision of self-certification has been introduced for the purpose of
expansion of the factory through amendment in Section 6.
·
Provision
of empowering the State Government to increase the period of spreadover from
10.5 hours to 12 hours (Section 56) through notification in the Official
Gazette.
·
Introduction
of a new Section 35A on provision of personal protective equipment for workers
exposed to various hazards and amendment of Sections 36 and 37 regarding entry
into confined spaces and precautions against dangerous fumes, gases etc.
·
Provision
of canteen facilities in respect of factories employing 200 or more workers
instead of the present stipulation of 250 workers (Section 45) and also
provision of shelters or restrooms and lunchrooms in respect of factories
employing 75 or more workers instead of the present stipulation of 150 workers
(Section 47).
·
Introduction
of new terms like “hazardous substance” and “disability” to existing
definitions (Section 2cc. 2ea)
·
Prohibition
of employment of pregnant women (it was earlier for all women) and persons with
disabilities on or near machinery in motion and near cotton openers (Section 22
(2)).
·
Reduction
in the eligibility criteria for entitlement of annual leave with wages from 240
days to 90 days (Section 79).
·
Presently
only the State Governments are empowered to make rules under the Factories Act.
It is now proposed to empower the Central Government also to make rules under
the Act on some of the important provisions.
The Mines Act, 1952
·
Amend
the “long title” so as to provide that “the regulation of conditions of work,
health and welfare of persons employed in mines”,
·
Substitute
the definition of owner so as to make it more comprehensive;
·
Define
“foreign company” with reference to the Companies Act, 1956;
·
Make
provisions for appointment of officials in addition to agents of the employer
in the mines;
·
Increase
the penalties provided in sections 63 to 70, sections 72A, 72B, 72C and 73 and
also to shift the burden of proof upon the person who is being prosecuted or
proceeded against to prove that it was not reasonably practical, o, all
practical measures to satisfy the safety requirements; and Amend section 76 so
as to enlarge the scope to cover the foreign companies and to insert a new
section 76 A to provide that the person who has actual ultimate control over
the affairs of the mines would continue to be liable for the contravention of
the provisions of the Act or of any rule or regulation or by law or order made
there under.
Minimum Wages Act, 1948
·
Statutory
recognition of National Floor Level Minimum Wage (NFLMW) and to make it
applicable to all employments and removing the restriction of 1000 or more
workers for an employment to come within the purview of Minimum Wages Act.
·
Review
and revision of NFLMW at intervals not exceeding five years, besides, a
component of variable dearness allowance will be worked out on the basis of
rise in consumer price index for industrial workers every six months.
·
Making
applicable NFLMW in respect of an employment where no minimum wages has been
fixed by both State and the Centre Government.
·
Review
and revision of the minimum rates of wages at intervals not exceeding five
years, if the minimum wages has a component of variable dearness allowance
worked out on the basis of rise in consumer price index for industrial workers,
and in any other case at the interval of two years.
·
Fixing
the minimum wage not below the NFLMW and, where there is variation between the
rates of minimum wages and NFLMW, to make applicable the higher of the two.
·
Giving
wage cards to the employees by employers, in addition to wage books and wage
slips as part of the maintenance of records.
·
Accepting
claims regarding minimum wages, within 12 months, instead of existing time
period of six months.
·
Enhancing
the fine prescribed for contravention of certain provision of the Act from
Rs.500/- to Rs.5000/- on first conviction and with imprisonment for a term
which may extend to one year or with fine of not less than Rs.5000 extending up
to Rs.10,000 in the case of second or subsequent conviction.
·
Enhancement
of compensation payable to the workers and measures to streamline the
enforcement provisions.
·
Making
applicable in Central Sphere, the minimum wages fixed by the State Government
in respect of particular employment, where no minimum wages have been fixed by
the Central Government.
·
Making
applicable in Central Sphere, the higher minimum wages fixed by the State
Government in respect of a schedule employments where the minimum wages fixed
by the Central Government is lower.
·
Amend
the definition of the “Appropriate Government”.
The Labour Laws (Exemption from Furnishing
Returns and
Maintaining Registers by Certain
Establishments) Act, 1988
·
Extending
the coverage of the Principal Act from 9 Scheduled Acts to 16 Scheduled Acts as
had been proposed in the 2005 Bill,
·
Continuing
with the existing method of defining establishments as ‘very small’ and ‘small’
with the change that the ‘small’ establishments would now cover the
establishments employing between 10 to 40 workers as against the existing
provision of 10 to 19 workers,
·
The
small establishments will be required to maintain two registers as against the
existing provision of maintaining three registers,
·
Allow
maintaining of registers or records in computer, floppy, diskette or on other
electronic media and submitting return through e-mail as had been proposed in
the 2005 Bill.
Annexure-II
State Legislation –
Amendment proposals of Government of Rajasthan
1. The Industrial Disputes Act, 1947 (2-A):- In case of
dismissal, discharge, retrenchment or termination of an individual workman, for
raising the industrial dispute 3 years limitation period is proposed.
The provision of 3 years limitation period for raising the
Industrial Dispute already exists in the ID Act, 1947. Section 2A(3) was
inserted vide amendment of 2010, providing limitation of period of 3 years from
the date of dismissal, retrenchment, discharge for making the application to
the Labour Court/Tribunal.
2. The Industrial Disputes Act, 1947 (9 D – Rajasthan Amendment).
For the purpose of recognition of the trade union, the membership of the trade
union is proposed to increase from 15% to 30%.
The Government of Rajasthan only amended the Industrial Disputes
Act, 1947 in 1958 and inserted a provision for registration of the
representative union. Similar provision do not exist in the Central Act.
Ministry of Labour of Employment has no objection to the proposed amendment for
increasing membership of union from 15% to 30% for the purpose of registering
as representative union.
3. The Industrial Disputes Act, 1947 (25-K). For applicability
Chapter V-B i.e. Pre-conditions of permission from the appropriate government,
notices, compensation for lay off, retrenchment, closure, it is proposed to
increase from 100 to 300 workmen. However, State Govt. can also apply
provisions of Chapter V-B to an establishment in which less than 300 but not
less than 100 workmen are employed.
For applicability of Chapter V B of Industrial Disputes Act,
1947 i.e. Pre- conditions of permission from the appropriate government,
notices, compensation for lay off, retrenchment, closure, 100 or more workmen
is required.
In the year 1984 by amendment of the Act, for applicability of
Chapter V B, the limit of number of workmen were reduced from 300 to 100 for
giving statutory protection to workmen of smaller establishments. The trade
unions will strongly oppose the proposal of Rajasthan Government for increasing
the number of workmen from 100 to 300. It is also not clear whether tripartite
consultations have taken place as required under ILO Convention 144.
4. Industrial Disputes Act, 1947[25-N (1) (a)]: 3 months’ notice
or wages in lieu of notice period is required to be paid before retrenchment or
closure. It is proposed to delete the wages in lieu of notice period.
The proposal for removing the wages in lieu of the 3 month’s
notice in case of retrenchment or closure, and making three months notice compulsory,
the Ministry of Labour & Employment has no objection to this proposal.
5. Industrial Disputes Act, 1947 [25-N (9)]: In case of
retrenchment in addition to the prescribed compensation i.e. 15 day’s wage for
each completed year of service. It is proposed to pay to three months average
pay to Workman.
The proposal is to provide additional financial security to the
retrenched workmen in addition to the compensation prescribed in Section 25-N
(9) of the Industrial Disputes Act, 1947. The Ministry of Labour &
Employment has no objection to this proposal.
6. Industrial Disputes Act, 1947 {25-O(8)} In case of closure in
addition to the prescribed compensation i.e. 15 day’s wage for each completed
year of service. It is proposed to pay to three months average pay to Workman.
The proposal is to provide additional financial security to the
retrenched workmen in addition to the compensation prescribed in Section 25-O
(8) of the Industrial Disputes Act, 1947. The Ministry of Labour &
Employment has no objection to this proposal.
7. The Industrial Disputes Act, 1947 Para 5 of part II of the
fifth schedule i.e. unfair labour practices related to “go slow”. Proposed to
define “go slow”.
The Ministry of Labour & Employment has no objection to the
proposal to define “go slow”.
8. The Contract Labour (Regulation & Abolition) Act, 1970
Section 1(4)(a) & (b). For applicability of the Act, the number of workmen
is proposed to increase from 20 to 50.
The two days strike notice by all CTUOs included the issue to
protect the interest of contract labour. If the number of workmen increased
from 20 to 50 for applicability of the Act, a large number of contract labour
would be deprived from the benefits/protection provided in the Act. Since the
issue of contract labour is frequently raised by all the CTUOs, they will
strongly oppose this proposal. It is also not clear whether tripartite
consultations have taken place as required under ILO Convention 144.
9. The Factories Act, 1948 Section 2(M)(I). Proposal is to
increase from 10 to 20 workers with the aid of the power for the purpose of
definition of factory.
The Factories Act, 1948 provide for the health, safety and
welfare of the workers. In the absence of any other alternative provision, just
taking out the workers from the Factories Act is likely to be opposed by the
trade unions. It is also not clear whether tripartite consultations have taken
place as required under ILO Convention 144.
10. The Factories Act, 1948 Section 2(M)(II). Proposal is to
increase from 20 to 40 workers without the aid of power for the purpose of
definition of factory.
The Factories Act, 1948 provide for the health, safety and
welfare of the workers. In the absence of any other alternative provision, just
taking out the workers from the Factories Act is likely to be opposed by the
trade unions. It is also not clear whether tripartite consultations have taken
place as required under ILO Convention 144.
11. The Factories Act, 1948 Section 105. Power of Inspector for
launching the prosecution is proposed to be the power of the State Government
i.e. no prosecution can be launched without the previous sanction of the State
Government.
The Ministry of Labour & Employment has no objection if the
prosecution can be launched with the prior sanction of the State Government.
12. The Factories Act, 1948 Section 106 – Proposed for the
compounding of the offences.
The Ministry of Labour & Employment has also proposed for
the compounding of the offences in its amendment, hence, has no objection to
this proposal.
