Lok Sabha Question No. 826 (UNSTARRED), answered on 2016-07-21
Subject: Changes in Labour Laws
Ministry: TEXTILES
Asked by: DHANANJAY BHIMRAO MAHADIK

## LOK SABHA UNSTARRED QUESTION NO.826 TO BE ANSWERED ON 21.07.2016

## CHANGES IN LABOUR LAWS

## 826. SHRI DHANANJAY MAHADIK:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a) whether  the  Government  has  introduced  labour  law  changes  for  the  textile  and apparel sectors, if so, the details thereof;
- (b) whether  the  Government  had  consulted  the  trade  unions  before  introducing changes in the labour law, if so, the details thereof;
- (c) the benefits that are likely to be accrued by the said labour law changes; and
- (d) the other steps taken/being taken by the Government for betterment of labour force in the textile sector?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a): Yes Madam.  Government has introduced Labour Laws reforms for the textile and apparel sector.  The details are at Annexure-I

(b): Consultation with trade unions is an ongoing process in the form of tripartite consultation.

(c): Benefits likely to be accrued by labour law reforms are:-

-  Government bearing employers' contribution in EPFO for new workmen  will  encourage  employers  to  bring  more  workers into the formal sector.
-  Optional EPF will lead to more cash in hand with the workers by removing the compulsory EPF contribution condition.
-  Increase in overtime caps shall lead to increased earnings to the workers.
-  A fixed term workman  will be considered at par with permanent  workman  in  terms  of  working  hours,  wages, allowances and other statutory dues.
- (d): Government has taken other steps as mentioned in Annexure-II for the betterment of labour force including the textile sector.

## Annexure - I

## Labour Law Reforms in special package for Apparel Sector:-

- (i) Government  to  bear  3.67%  of  employer's  Employee  Provident  Fund (EPF) contribution for new workmen in addition to existing reimbursement of 8.33% employer contribution under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) for 3 years.
- (ii) EPF is made optional for employees earning less than Rs. 15,000 per month.
- (iii)    Increase  in  overtime  limit  for  workers  in  apparel  industry  from  50 hours to 100 hours per quarter.
- (iv) Introduction  of  Fixed  Term  Employment:  Looking  at  the  seasonal nature  of  the  industry,  Fixed  Term  Employment  has  been  approved for  the  apparel  industry  under  Sub  section  1  (15)  of  the  Industrial Employment (Standing Order) Act, 1946.

## Annexure - II

## Other steps taken by Government for the betterment of labour force including the textile sector are:-

- a. 'Several labour reform initiatives have been taken by the Government,  which  will  be  benefitting  the  manufacturing  sector including the textile sector. In line with the recommendations of the Second  National  Commission  of  Labour,  Government  has  taken steps to draft Small Factories Bill, special legislation for regulating the  working  and  service  conditions  of  the  workers  in  the  small manufacturing  units  employing  less  than  40  workers.  Further, Government  has  taken  steps  for  drafting  four  Labour  Codes  for Wages: Industrial relations; Social Security & Welfare; and Safety, Health and Working Conditions respectively, by simplifying, amalgamating  and  rationalizing  the  relevant  provisions  of  the existing  Central  Labour  Laws.  This  will  help  in  catalysing  the creating of employment opportunities in the country, while ensuring basic aspects of safety, social security and health of workers.
- b. A new Scheme 'Pradhan Mantri Rojgar Protsahan Yojana'has been announced  in  the Budget  for 2016-17  with the objective of promoting  employment  generation  and  an  allocation  of  Rs.  1000 crores  has  been  made.  The  Scheme  is  being  implemented  by  the Ministry of Labour and Employment in 2016-17. Under the scheme employers would be provide an incentive for enhancing employment by reimbursement of the EPS contribution made by the employer in respect of new employment'.