Lok Sabha Question No. 2480 (UNSTARRED), answered on 2015-12-14
Subject: Labour Reforms
Ministry: LABOUR AND EMPLOYMENT
Asked by: B.N. CHANDRAPPA

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 2480 TO BE ANSWERED ON 14.12.2015

## LABOUR REFORMS

2480. SHRI B.N. CHANDRAPPA:

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

- (a)whether  a  high  powered  expert  committee  under  the  NITI  Aayog has submitted its recommendations for labour reforms to promote innovation  and  entrepreneurship  and  also  to  create  more  job
- opportunities particularly in the industrial sector;
- (b)if so, the details of the recommendations along with the reaction of the Government thereto;
- (c)whether  the  Government  has  taken  steps  to  incorporate  the  said recommendations;
- (d)if so, the details thereof and the mechanism through which the said suggestions are likely to be implemented; and (e)if not, the reasons therefor?

## ANSWER

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

- (a) & (b): As  a  follow  up  of  the  Budget  announcements,  2015-16 regarding the Government's intension to establish the Atal Innovation Mission (AIM) in NITI Aayog and establishment of Self Employment and Talent Utilisation (SETU), NITI Aayog constituted an Expert Committee under  the  Chairmanship  of  Prof.  Tarun  Khanna,  Director,  South  Aisa Institute, Harvard University, USA to workout detailed contours of the AIM & SETU.The Expert Committee, in its report submitted in October, 2015  has  recommended  the  following  in  respect  of  Labour  Market Reforms'

-  The  central  government  should  implement  the  3  employee choices  for  pensions  and  health  insurance  announced  in  the Union Budget 2015-16.
-  Complete  consolidation  of  44  central  labour  laws  into  4  labour codes.
-  Create an employer choice of complying under Factories Act or Shops and Establishments Act for all nonhazardous enterprises.
-  Amend the Trade Unions Act to make them more representative, and amend the act to reduce if not remove the role of outsiders because the politicisation of trade unions is toxic for the Make in India campaign.
-  Set a deadline for all central government labour approvals to be live on a single online portal with a 90 day deadline.
-  Encourage  states  to  use  Article  254  (2)  of  the  constitution  to amend labour laws.

(c)  to (e):   Government has already taken a number of initiatives for governance  reforms  as  well  as legislative  reforms.  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  Central  Labour  Laws.  Ministry  has  also  initiated  process  of drafting a Small Factories Bill for regulating the working and service conditions  of  small  manufacturing  units  employing  less  than  40 workers. Also the Government has launched Shram Suvidha Portal on 16 th October, 2014. The main features of this portal are:

- 
- Allotment of Unique Labour Identification Number (LIN) to Units.
- Filing  of  self-certified  and  simplified  Single  Online  Common
-  Annual Return by the establishments.
- 
- Transparent Labour Inspection Scheme.

These reforms will help in catalyzing the creation of employment  opportunities in the country, without diluting basic aspects of safety, security and health of workers.

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