labour law reforms

8/16/2019 Labour Law Reforms

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Labor Law ReformsGurleen Kaur Parmar

Pre-PhD (HR)



Introduction

Labour? Any person who provides services for waes asdistinuished

from those rendered !y entrepreneurs for

pro"ts#

Labour Law are made to protect the commoninterest of wor$ers# %or those in the industrial

sector& orani'ed la!our unions "ht for !etterwaes& reasona!le hours and safer wor$inconditions# he la!our law reforms over the yearshave led to eorts to stop child la!our& provide

health !ene"ts& *o! security and improve thelivin conditions# It not only !ene"t the la!ourers



• he main aim of such laws should !e to createmore& safer& and rewardin *o!s for the la!our#

•

his includes standards on – minimum waes&

– wor$in conditions&

– overtime controls&

–

riht aainst un*usti"ed retrenchment& – strenthenin of +a!or unions&

– Riht of wor$er to compensation in case of accidentat wor$ place&

–

post-retirement !ene"ts& – Personal proress&

– s$ill development&

– ,ocial security

– Dini"ed and respectful *o! etc#



:odies related to IR

8inistry of +a!our and .mployement is there at 5entrewith 0 attached o=ces& ; su!ordinate o=ces& 0autonomous orani'ations and ad*udication !odies andAr!itration !ody# Important ones are >

# ?=ce of 5hief +a!or 5ommissioner

2# +a!or :ureau

4# .mployee ,tate Insurance 5orporation

0# .mployee Provident %und ?rani'ation3# ,everal @Industrial ri!unal 5um la!or courts are

operatin to ad*udicate under Industrial Disputes Act

6# :oard of Ar!itration



Beed for la!or reforms

• India has /0C of wor$force in unorganized sectorwith second hihest wor$force of 017 million ne<t tochina#

•

,impli"cation of processes reuired#• Ender constitution of India la!our is su!*ect of

concurrent list where !oth central and state

overnment are competent to enact leislation

• India has emered as outsourcin hu! in thepresent day with investments comin from outside#

• +a!our reforms if are not eective& would ta$e a hiton India as an investment destination# It may leadto reat economic losses for the economy#



+A:?R R.%?R8, 2;0 -

3• he new overnment had unveiled

some of the most awaited la!our

reforms emphasisin that ease of!usiness has to !e made possi!le ifF8AK. IB IBDIA has to succeed#

•

“Shramev Jayate” should haveeual power as “Satyamev Jayate” so as to develop the country#



Apprentice Protsahan o*ana

•

rade wor$ers& enineers& ;2 passedvocational students& need to undero traininin industry to enhance their s$ill# ?n thecompletion of the trainin& they would

!ecome reular wor$ers and would etstipend in form of remuneration#

• Increased ,tipend> 7; C of wae of reularuns$illed wor$er in "rst year& 1;C in second

year#• A!out 3;; new trades are added#

• ,ettin up of Central Institute forocational !raining# Ender this scheme&

Industrial rainin Institutes would provide



,hram ,uvidha Portal

• Allots +a!our Identi"cation num!er tonearly 6 la$h "rms#

• Allows e-"lin of compliance reports#

•5ompanies can now reister online atthe ,hram ,uvidha portal and "le a self-certi"ed sinle compliance report for 65entral la!our laws#

• ,harply streamlinin complianceprocess#

• .limination of !ureaucracy red-tapin in

turn savin time#•



Eniversal Account Bum!er (EAB)

•In the .mployees Provident %und ?rani'ation

a!out Rs 27&;;; crore was lyin unclaimed#

• he EAB will allow collation of accounts and

viewin of updated P% accounts#& would !eporta!le throuhout the wor$in careers ofmem!ers& this scheme would ena!le 0#7 millionemployees to ma$e their Provident %und account

porta!le& hassle-free and universally accessi!le#

•5ompanies does not have to maintain separate P%accounts for each mem!er#



RABD?8 IB,P.5I?B ,5H.8.• ,teps to end the inspector ra* -- harassment !y

o=cials#

• A computeri'ed list of inspections will !e eneratedrandomly on predetermined o!*ective criteria andcomplaints-!ased inspection will also !e

determined centrally !ased on data and evidence#• 5omputer draws would decide which inspector

(la!our) will o for inspection to which factory andhe will have to upload his report online in 72 hours#

• hese facilities would provide what is called asminimum overnment& ma<imum overnance

• It will lead to reduction of corruption which is mostimportant if ma$e in India campain successful #



Hire and %ire schemes

• Reardless of the si'e of the company all wor$ersmust !e on the master roll of the company i#e#threshold of duration (20;days) and si'e (;;wor$ers) has !een removed#

• 9or$ers counsel should !e formed in every enterprice reardless of si'e# 9ith wor$er representativeon !oard elected !y the people with eual power asother mem!ers#

• he limit for intrinsic informal wor$er hirin isreduced to 3 C

• If the wor$er is sac$ed then he will have to !e iven!ene"ts such as DA & P%& severance pay i#e# 03days

salary for every year of wor$#•



5hild la!or• Ender previous laws& child la!or is not a punisha!le

oence in some Jnon-ha'ardousJ sectors such asfarmin#

• It was arued that there should not !e anydiscrimination on wor$in in ha'ardous or non-

ha'ardous industry in terms of the !an#• 5hild +a!our Act to !e !rouht in tune with the

Riht o .ducation (R.) Act& which ma$eseducation compulsory for all children up to the aeof 0#

• .mployin a child under 0 for any wor$ --ha'ardous or non-ha'ardous -- will !e an oencepunisha!le with imprisonment up to two years or a"ne up to Rs 3;&;;; or !oth& an increase from the

current one-year *ail or Rs 2;&;;; punishment#



he impacts of new la!our +aw reforms

• he a!ove reforms will accelerate F8AK. IBIBDIA campain#

• Increase in s$illed la!our#

• .ncourae the entrepreneurs#

• 9ill encourae investment from India anda!road #

• 9ill reduce unemployment#

•

9ill eliminate lea$aes from economy#• 9ill increase income of ovt#(which can !e used

to reduce de"cit)

• 9ill contri!ute to rowth of GDP and decrease

in InLation in country#



5onclusion

• he a!ove la!our reforms – will improve s$illed la!our mar$et

– increasin the employment

– simultaneously increasin uality ofproduction

– and thus meetin the lo!al standards

– and will in turn increase the prosperityof country

– and ma$e India a attractive destinationto investors#



han$ you

labour law reforms

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