Lok Sabha Question No. 1368 (UNSTARRED), answered on 2020-02-10
Subject: Labour Reforms
Ministry: LABOUR AND EMPLOYMENT
Asked by: Pritam Gopinath Munde

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 1368 TO BE ANSWERED ON 10.02.2020

## LABOUR REFORMS

1368. DR. PRITAM GOPINATHRAO MUNDE:

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

- (a)whether the labour reforms assume significance in view of an over six-year-low Gross Domestic Product (GDP) growth of 4.5 per cent in the second quarter of this fiscal;
- (b)if so, whether the Government is planning for effective implementation of labour laws at the grass-root level;
- (c)if so, the steps taken by the Government in this regard;
- (d)whether the Government proposes to implement all four codes on wages, industrial relations, social security and occupational safety,
- health and working conditions;
- (e)if so, the steps taken by the Government thereon; and
- (f)the  other  steps  taken  by  the  Government  to  expedite  the  labour reforms process?

## ANSWER

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

- (a): Reforms in labour laws are an on-going process to update the legislative as well as governance 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.
- (b) & (c): Labour  is  in  the  Concurrent  List  of  the  Constitution  of India, therefore, the Centre and the States have separate enforcement machinery  to  conduct  inspections  from  time  to  time  to       ensure

effective  implementation  of  labour  laws.  The  enforcement  in  the Central  Sphere  is  done  through  the  officers  of  the  Central  Industrial Relations Machinery (CIRM) in order to protect interest of the workers in respect of establishments falling under the Central Sphere to ensure that statutory provisions are implemented. Legal actions are initiated as per law in case of any violation. Further, 'Santusht'- Implementation Monitoring Cell (IMC) has been constituted in the Office of Minister of State (Independent Charge) for Labour & Employment in January 2020. The objective of 'Santusht' is to promote transparency, accountability, effective  delivery  of  public  services  and  implementation  of  policies and schemes of Ministry of Labour and Employment at grassroot level through constant monitoring.

- (d) & (e): The Ministry has taken steps for drafting four Labour Codes i.e. the Code on Wages; the Industrial Relations Code, the Occupational Safety, Health & Working Conditions Code & the Code on Social  Security  by  simplifying,  amalgamating  and  rationalizing  the relevant provisions of the existing Central Labour Laws.  Out of these 4  Labour  Codes, the  Code  on  Wages,  2019,  has  been  notified  on 8th August,  2019  in  the  Gazette  of  India.   The  rest  3  Codes  i.e.  the Occupational Safety, Health and Working Conditions Code, 2019, the Industrial Relations Code, 2019 and the Code on Social Security, 2019 have been introduced in Lok Sabha on 23rd July, 2019, 28th November, 2019  and  11th  December,  2019  respectively.  All  these  three  Codes have  been  referred  to  the  Parliamentary  Standing  Committee  on Labour for examination.
- (f): The  Ministry  has  also  undertaken  amendments  in  various Central Labour Acts like the Payment of Bonus Act 1965 enhancing the eligibility  limit  for  payment  of  bonus  from  Rs  10,000/-  to  Rs.  21,000/per month and the Calculation Ceiling from Rs. 3,500/- to Rs. 7,000/- or the  minimum  wages;  the  Payment  of  Wages  Act,  1936   enabling payment of Wages to employees by Cash or Cheque or crediting it to their bank account; the Child Labour (Prohibition and Regulation) Act, 1986  prohibiting  employment  of  children  below  14  years  in  any occupation or process; the Maternity Benefit Act 1961, increasing the paid maternity leave from 12 weeks to 26 weeks; Payment of Gratuity Act, 1972 enhancing the gratuity limit of Rs. 10 lakhs to Rs. 20 lakhs.

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