Gujarat Labour Minister Vijay Rupani’s note on amendments in Labour laws

Gandhinagar, DeshGujarat

Labour and Employment Minister Vijay Rupani’s note on the Proposed Labour Laws Amendment Bill

Amendment under the Employee’s Compensation Act, 1923

Presently, when an employee has a fatal injury by an accident occurred at workplace, or has sustained total or partial disabilities, the victim or his dependents may apply under the Employee’s Compensation Act, 1923, before the Employee’s Compensation Commissioner within 90 days from the date of accident. But, poor-awareness of the same among the employees, and their surviving family members they are not able to file such application, which puts them in difficulty to get appropriate compensation.

Therefore, the Bill suggests an amendment in the Employee’s Compensation Act, to insert the proviso to cover cases where the employee or his dependent fails to bring such application within 90 days. When a person does not have knowledge of or legal awareness of legal proviso due to his transferable job or due to his belonging to Scheduled Castes and Scheduled Tribes and faces difficulties in getting such compensation, the nominated Government officer will apply on his behalf and will provide him remedies.

Amendment under the Minimum Wages Act, 1948

The Minimum Wages Act, 1948, which is the most sensitive and touches the interest of the labourers, provides that payment of wages shall be made in cash. Due to this which there are complaints that labourers are paid with less that minimum wages.

To remove this difficulty, the Bill suggests that where any shop or commercial establishment, or factories employs 20 or more employees, it shall make the payment of minimum wages through bank account. This amendment will bring transparency in paying minimum wage and will protect labourers from their economic exploitation and also will provide them legal protection.

Presently, the definition of ‘employer’ under the Minimum Wages Act, 1948, does not include ‘out sourcing agency’. Therefore, the Bill suggests that ‘out sourcing agency’ should be included in the definition of employer.

Now-a-days ‘out sourcing has become a part of management and for every kind of services ‘out sourcing agencies’ are available. Large number of employees are engaged by ‘out sourcing agencies’ and it is duty of the state to assure that they must not be exploited. Therefore, our Government, to protect rights of the labourers employed by ‘out sourcing agencies’, includes them under the Minimum Wages Act, 1948. Expanding definition of employer will protect more labourers from their exploitation.

Amendment under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

Presently, according to the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, the definition of ‘worker’ is limited to the supervisory workers who received wages Rs. 1600 per month only. Reason thereof, many of supervisors are excluded from the applicability of the Act.

Therefore, the Bill suggests increasing it to three times of the minimum wages for skilled workers. By this amendment, supervisors working at construction work will also be benefited and will be eligible for all the benefits as offered to other employees. Linking of this limitation with minimum wage will remove this problem forever.

Amendment under following Labour Laws for Self Certification cum Consolidated Annual Return Scheme

In present bill it is proposed to make self certification cum consolidated annual return scheme compulsory for the industries notified by the State Government. It is proposed to cover following labour laws under the said scheme.

1. The Factories Act, 1948
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965
4. The Contract Labour (Regulation and Abolition) Act, 1970
5. The Payment of Gratuity Act, 1972

The object of the said amendment is to dilute the Inspector-Raj. Further, at present large number of annual returns have been submitted by the industries, under the said amendments, it is proposed to reduce it to ONE as Consolidated Annual Return. Thus, doing away with burden of submitting large number of annual returns as prescribed under various labour laws, will allow industries to focus on productivity.

It is also proposed to exempt the industries from inspections, which are enrolled. However, for check and balance, it is proposed to have regular Audit of such industries. The industries, which comply with the Labour Standards, will be exempted from inspections. It is also proposed to Award such industries with appreciation Certificates.

It is also proposed that for On-line filing of registration and consolidated Return on Labour Web Portal, called SHRAM SUVIDHA SEWA has been launched by the Labour and Employment Department. The information on the web portal will be accessable to all stake holders and workers will have liberty to agitate if insufficient or wrong information are placed on the Web Portal.

The said amendments will thus bring transparency, reduce inspection raj, and will ease the functioning of industries in Gujarat. It will lead to more investments.

Thus, it will fulfill the dream of the Honourable Prime Minister Shri Narendrabhai Modiji of “Minimum Government – Maximum Governance”. It will also full fill the idea of “Make in India”.

Amendment under various Labour Laws for compounding the offences, in lieu of the provisions of the Punishment.

At present, there is no such provision in Labour Laws. The following Labour Laws are covered under the Bill for compounding the offences.

1. The Industrial Disputes Act, 1947
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965
4. The Contract Labour (Regulation and Abolition) Act, 1970
5. The Payment of Gratuity Act, 1972
6. The Motor Transport Worker’s Act, 1961
7. The Beedi Cigar Worker’s (Condition of Services) Act, 1966
8. The Equal Remuneration Act, 1976

At present, the criminal cases are filed for the violation of Labour Laws in the Court of Judicial Magistrate First Class. It takes several years for disposal of such cases. The amount of fine is also meager. Further, the fine imposed is deposited in the treasury of the Government.

It is therefore, proposed to enhance the amount of fine up to Rs.21000/- under various Labour Laws. The compounding of the offences can be done only after the settlement of the dispute / grievances of the worker. Different amount have been suggested for the compounding of different offences, under various Labour Laws.

It is proposed to disburse 75 % to 100 % of the compounded amount to the affected workers. In the cases, where workers are not indefinable, the compounded amount will be deposited in the Gujarat State Social Security Board.

The said amendment will help in reducing the burden of court cases in Courts, help industries in saving time, money in attending the Courts. Further, it will help in creating industrial harmony.

Amendment under the Industrial Disputes Act, 1947

-It is proposed to amend the provision of declaring any activity as Public Utility Service from six months to initially one Year and subsequently for two years. The said amendment will help increase of industrial productivity and public at large will be benefited for continuous services of various emergencies. However, workers / industries can agitate their issues by way of strike / lock-out, as the case may be, after giving notice of 14 days.

-At present, the complaints of reinstatement can be filed by the workers within three years from the date of retrenchment. It is proposed to reduce the period of three years to one year. It will thus help workers in availing their rights.

-The Chapter V-D of the Industrial Disputes Act, 1947 is applicable to the Special Economic Zone (SEZ), where, the retrenchment of workers is kept out of the definition of Industrial Dispute, under the Industrial Disputes Act, 1947. To strike a balance, the retrenchment compensation is enhanced from 15 days to 45 days in Special Economic Zone (SEZ).

The present Bill proposes, to expand the ambit of Chapter V-D of the Industrial Disputes Act, 1947 to Special Investment Regions (SIR), 100 % Export Oriented Units and National Investment and Manufacturing Zone (NIMZ). The bill also proposes to enhance the retrenchment compensation to 60 days.

The said amendment will generate elasticity in employment in such segment of industries; will attract more investments in such regions and more employment will be generated.

Thus, it will fulfill the dream of the Honourable Prime Minister Shri Narendrabhai Modiji of “Make in India”.

-It is proposed to amend the provision for Notice of Change in Schedule IV of the Industrial Disputes Act, 1947, so as to exempt the industries from giving the notice of change in cases of change in labour management due to modernization and innovations.

The said amendment, will lead to increase in productivity and competitiveness. The process of modernization and innovations will also get a boost.

At the outset, the said Bill is timely placed and is fairly balanced for all stake holders. The Bill aims to increase investments in Gujarat, increase productivity, competitiveness with respect to Global needs, without compromising the constitutional rights of the workers.

Minister’s statement: Compounding means creating industrial harmony. Opposition of Congress is only a political stunt.

At present, there is no such provision in Labour Laws. The following Labour Laws are covered under the Bill for compounding the offences.

1. The Industrial Disputes Act, 1947
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965
4. The Contract Labour (Regulation and Abolition) Act, 1970
5. The Payment of Gratuity Act, 1972
6. The Motor Transport Worker’s Act, 1961
7. The Beedi Cigar Worker’s (Condition of Services) Act, 1966
8. The Equal Remuneration Act, 1976

At present, the criminal cases are filed for the violation of Labour Laws in the Court of Judicial Magistrate First Class. It takes several years for disposal of such cases. The amount of fine is also meager. Further, the fine imposed is deposited in the treasury of the Government.

It is therefore, proposed to enhance the amount of fine up to Rs.21000/- under various Labour Laws. The compounding is permitted only after the Officer authorized to decide compounding of the offences, satisfies that the dispute / grievances of the worker is complied totally.

It is proposed to disburse 75 % to 100 % of the compounded amount to the affected workers. In the cases, where workers are not identified, the compounded amount will be deposited in the Gujarat State Social Security Board.

The phenomenon of compounding is allowed for Three offences, subject to compliance of dispute / grievance of the worker. Further, this amendment does not restrict the Government or worker to file criminal cases for alleged violation of labour laws.

Similar provisions relating to compounding of offenses already exists in various other laws like, the Electricity Act, Criminal Procedure Code, Indian Penal Code etc. The said acts have come into force in the era of congress. So opposition of congress is only a political stunt.

The said amendment will help in reducing the burden of court cases in Courts, help industries in saving time, money in attending the Courts. Further, it will help to give justice in time and creating industrial harmony as well.

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