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.
Source: loksabha.nic.in //COPY-NFPE//
