Lok Sabha Question No. 2489 (UNSTARRED), answered on 2016-05-09
Subject: Revamp of Labour Laws
Ministry: LABOUR AND EMPLOYMENT
Asked by: JAYADEV GALLA, R. VANAROJA, K. GOPAL, RODMAL NAGAR, ASHOK SHANKARRAO CHAVAN, ANANDRAO  ADSUL, Shrirang Appa Barne, PONNUSAMY VENUGOPAL, VINAYAK BHAURAO RAUT, VIJAY KUMAR S.R., JAYAKUMAR JAYAVARDHAN, KRISHNAN NARAYANASAMY RAMACHANDRAN, SHRIKANT EKNATH SHINDE

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

UNSTARRED QUESTION NO. 2489

TO BE ANSWERED ON 09.05.2016

REVAMP OF LABOUR LAWS

## 2489. SHRI JAYADEV GALLA:

SHRIMATI VANAROJA R.:

DR. K. GOPAL:

SHRI NAGAR RODMAL:

SHRI ASHOK SHANKARRAO CHAVAN:

SHRI ANANDRAO ADSUL:

SHRI SHRIRANG APPA BARNE:

DR. P. VENUGOPAL:

SHRI VINAYAK BHAURAO RAUT:

SHRI S.R. VIJAYAKUMAR:

DR. J. JAYAVARDHAN:

SHRI K.N. RAMACHANDRAN:

DR. SHRIKANT EKNATH SHINDE:

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

- (a)whether  the  Government  has  revamped/proposes  to  revamp  the Labour Laws including Factories Act, 1948 and if so, the details and
- the current status thereof;
- (b)whether the Government has held discussion with stakeholders in this regard;
- various
- (c)if so, the details and the outcome thereof; and
- (d)whether  the  Government  proposes  to  double  the  wage  ceiling  to calculate  bonus  and  proceed  towards  the  Universal  Wage  System
- and if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

(a): Reforms in  labour  laws  are  an  ongoing  process  to  update legislative system to address the need of the hour and to make them more   effective   and   contemporary  to  the  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 Safety and Working Conditions respectively, by simplifying, amalgamating and rationalizing the relevant provisions of the existing Central Labour Laws. Similarly, the Ministry has taken steps to draft Small  Factories  Bill,  regulating  the  working  and  service  condition  in the small manufacturing  units  employing  less  than  40  workers. Ministry  has  also  taken  steps  for  amendment  of  individual  Labour legislations including the Factories Act, 1948. All these proposals are at various stages of consideration.

- (b) & (c): The  process  of  Legislative  reforms  includes  consultation with stakeholders including Central Trade Unions, Employers' Association and State Governments in the form of tripartite consultation.  During  recent  months,  several  such  tripartite  meetings have  been  held  for  considering  suggestions  on  various  legislative reform  proposals  where  the representatives of the  stakeholders participated and gave their suggestions. The suggestions received on the legislative proposals are considered by the Government appropriately.
- (d): The  Government  has  carried  out  amendments  in  the Payment of Bonus Act 1965 and the calculation ceiling of Bonus has been increased from Rs. 3500 per mensem to Rs. 7000/- per mensem or the  minimum  wage  for  the  scheduled  employment,  as  fixed  by  the appropriate Government whichever is higher. With regards to Universal Wages System, the provisions of the Code on Wages Bill are still under consideration.

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