Lok Sabha Question No. 442 (UNSTARRED), answered on 2017-12-18
Subject: Labour Law Reforms
Ministry: LABOUR AND EMPLOYMENT
Asked by: DHARMENDRA YADAV, KUNWAR PUSHPENDRA SINGH CHANDEL, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE, BHARATENDRA SINGH, SHIVAJI ADHALRAO PATIL, PRITAM GOPINATH MUNDE

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 442 TO BE ANSWERED ON 18.12.2017

## LABOUR LAW REFORMS

†442. SHRI DHARMENDRA YADAV:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI ANANDRAO ADSUL:

DR. SHRIKANT EKNATH SHINDE:

KUNWAR BHARATENDRA:

SHRI ADHALRAO PATIL SHIVAJIRAO:

DR. PRITAM GOPINATH MUNDE:

SHRI SHRIRANG APPA BARNE:

SHRI NAGENDRA KUMAR PRADHAN:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether the Government proposes to simplify/make the labour laws
- in the country more flexible and if so, the details thereof;
- (b)whether  various  trade  unions  have  raised  concerns/opposed  the said move of the Government;

(c)if so, the details thereof along with the response of the Government

- thereto; and

(d)the further steps taken/proposed to be taken by the Government to

- strengthen the labour reforms in the country?

## ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a) to (c): Reforms in labour laws are an ongoing process to update the legislative system to address the need of the hour so as to make them more effective, flexible and in sync with emerging economic and

industrial  scenario.  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. Accordingly,  the  Ministry  has  taken  steps  for  drafting  four  Labour Codes on Wages; Industrial Relations; Social Security & Welfare; and Occupation  Safety,  Health  and  Working  Conditions  respectively,  by simplifying, amalgamating and rationalizing the relevant provisions of the  existing  Central  Labour  Laws.  Out  of  these,  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. The  process  of  Legislative  reforms  on  Labour  includes  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.

(d): 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:-

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

-  Ministry has notified  'Ease of Compliance to maintain Registers under various Labour Laws Rules, 2017' on 21st February 2017 which  has  in  effect  replaced  the  56  Registers/Forms  under  9 Central Labour Laws and Rules made there under in to 5 common Registers/Forms. The number of forms provided under 3 Central Acts/Rules has been reduced from existing 36 to 12. The register can  also  be  maintained  in  digitised  manner.  This  will  save efforts,  costs  and  lessen  the  compliance  burden  by  various establishments.
-  A Model Shops and Establishments (RE&CS) Bill, 2016 has been circulated to all States/UTs for adoption with appropriate modification.  The  said  Bill  inter  alia  provides  for  freedom  to operate  an  Establishment  for  365  days  in  a  year  without  any restriction  on  opening/closing  time  and  enables  employment  of women during night shifts if adequate safety provisions exist.
-  A  category  i.e. Fixed  Term  Employment has  been  introduced under  Industrial  Employment  (Standing  Orders)  Act,  1946  to impart flexibility to an establishment to employ people in case of Apparel  Manufacturing  Sector  to  meet  the  fluctuating  demands of the sector due to its seasonal nature.

*******