Government Efforts to Simplify of Labour Laws. What is Model Shops and Establishment? (Download PDF)

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The Second National Commission on Labour has recommended that the existing Labour Laws should be broadly grouped into four or five Labour Codes on functional basis. Maternity Benefit Amendment Act, 2017, increases the paid maternity leave from 12 weeks to 26 weeks.

Labour Laws on the Anvil

Government took steps for drafting four Labour Codes by simplifying, amalgamating, and rationalizing the relevant provisions of the existing Central Labour Laws. These codes are:

  • Wages
  • Industrial Relations
  • Social Security & Welfare
  • Occupation Safety
  • Health and Working Conditions

Legislative Initiatives in Labour Law

The Ministry has taken a number of legislative initiatives in labour laws during the last 3 years. Some of the important initiatives are as follows:

  1. Amendment to the Payment of Bonus Act, 1965 by which eligibility limit for payment of bonus enhanced from ₹ 10000/- to ₹ 21000/- per month and the Calculation Ceiling from ₹ 3500/- to ₹ 7000/- or the minimum wages.
  2. Payment of Wages (Amendment) Act, 2017 enabling payment of Wages to employees by Cash or Cheque or crediting it to their bank account.
  3. Child Labour (Prohibition and Regulation) Amendment Act, 2016 provides for complete ban on employment of children below 14 years in any occupation or process.
  4. Maternity Benefit Amendment Act, 2017, increases the paid maternity leave from 12 weeks to 26 weeks.
  5. The Employee Compensation (Amendment) Act, seeks to rationalize penalties and strengthen the rights of the workers under the Act.

Changes for Maintaining the Registers under Labour Laws Rules, 2017?

  • Replaced the 56 Registers and Forms under 9 Central Labour Laws and Rules to 5 common Registers and Forms.
  • The number of forms provided under 3 Central Acts and Rules has been reduced from existing 36 to 12.
  • The register can also be maintained in digitized manner to
    • Save efforts
    • Save costs
    • lessen the compliance burden by various establishments.

What is Model Shops and Establishment (RE&Cs) , 2016?

The Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016 will give a boost to employment opportunities to women, as they will be permitted to work during night shifts with adequate safety and security provisions. It will cover only shops and establishments employing ten or more workers except manufacturing units

  • The Bill provides
    • freedom to operate an Establishment for 365 days in a year without any restriction on opening/closing time
    • enables employment of women during night shifts if adequate safety provisions exist.
  • The bill has been sent to all states/UTs for adoption with appropriate modification

What is Fixed Term Employment?

  • A new category i.e.. Fixed Term Employment has been introduced under Industrial Employment (Standing Orders) Act, 1946.
  • For this category, the establishment can have flexibility to employ people in case of Apparel Manufacturing Sector to meet the fluctuating demands of the sector due to its seasonal nature.

Background: What Are Labour Laws?

  • Indian labour law refers to laws regulating labour in India.
  • Indian governments at federal and state level have sought to ensure a high degree of protection for workers, but in practice, legislative rights only cover a minority of workers.

Progress in These Labour Laws

  • The Labour Code on Wages has been introduced in Lok Sabha on 10.08. 2017 and subsequently, referred to the Parliamentary Standing Committee on Labour.
  • The rest of the codes are at pre-legislative consultative stage:
    • Consultation with stakeholders including Central Trade Unions, Employers՚ Association, and State Governments in the form of tripartite consultation.
    • Suggestions/comments received during the tripartite consultations are taken into account/considered while finalizing the amendment in various Act/Rules.

- Published/Last Modified on: February 14, 2018

Policy/Governance, Economy

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