Sir(s),

1. If a employer whether of smaller establishment or big establishment and his HR Officer understands labour laws and make compliance of the same properly, I think, the entire issue of repeated visits of various inspectors to the said factory or establishment is meaningless. For example, under ESI Act, 1948 if the employer has deposited contribution within time, submitted returns in respect of all employees, submitted declaration forms, submitted accident reports as and when required and all of his employees have their Identity Cards including Family Identity Cards etc., I think, there is hardly any fear or hesitation for the employer or his officer to not to produce records before any Social Security Officer of ESIC or not to attend to him.

2. The problem arises only when the employer or his HR officials neither make compliance in time, nor produce the records on the date and time fixed by the Social Security Officer of ESIC. Thus, in this way repeated visits are made by the officials including their senior officers, branch office manager etc. etc.

3. Similar position can be in respect of verification of records in respect of other labour laws. In my opinion, it will not be fair to blame entirely on law-enforcement agencies. The main issue is whether the employer or his concerned official has made proper compliance and has provided all benefits and facilities as should have been provided under different labour laws to its employees.

4. Even if the visits of the inspectors, government officers to the establishments/factories is banned totally, the question will arise, whether this act will result into further welfare of working class and whether there will be any improvement of compliance under various labour laws?. I think, it will lead us to no where except towards more exploitation of labour/working class.

From India, Noida
Sravamev Jayathe is a political slogan. Take it granted that what said would not be done. It is not the government that runs the country, It is Capitalists/Industrialists/Managers. To the maximum extent they do not bother workforce. Workforce is not in a commendable position to do any thing to get rightful share from Capitalists/Industrialists/Managers. Inspection Raj, from the workers point of view, not only fill their belly but also filling the belly of workers. As Such, Capitalists/Industrialists/ Managers who are unhappy both with Labour Authorities (because some thing they get and also see that workers are getting something for them) now getting two birds in one shot. First kill the Inspection/Labour Authorities existance and workers, who are already dead to some extent vanish for ever. This is the aim and approach of the present govt.
From India, Nellore
Labour law reforms must have twofold objectives. The law must protect employers from harassment of inspection and permit raj. Equally important is to protect workers from employers who flout laws in connivance with bureaucracy to deny to workers whatever meagre protection that laws currently bestows to workers.

The current focus has predominant objective of curbing petty bureaucracy from harassing employers through inspections and denial of permits. On the other hand, labour law reforms to secure genuine protection to workers as is available globally in civilised societies, which is the most pressing need is becoming a taboo, as if not worthy of any serious public discussion. In result, workers do not get any protection as laws are often twisted and manoeuvred to oppress the workers.

Where labour reforms must begin

The following four fundamental/human rights conventions adopted by ILO, has not yet been ratified by India though our country is one of the founding members of ILO established in 1919 and is continuing as member of ILO.

1. Freedom of Association and Protection of Right to Organise (Convention No.87 of 1948)

2. Right to Organise and Collective Bargaining (Convention No.98 1949)

3. Minimum Age (Convention No.138 1973)

4. Worst forms of Child Labour (Convention No.182 of 1999)

The urgent need for the Government if it cares for the poor and the workers is to ratify these four ILO Conventions, aforesaid.

Ease of doing business in India

Large businesses and prominent Indian business houses are fairly happy with current situation. However, when globalisation arrived the ease of doing business in India based on certain readily measurable parameters designed by World Bank became a subject of focus. Global business tycoons are embarrassed to allow bribing petty officialdom though the same tycoons feel no compunction to indulge in corrupt practices to secure hugely profitable business opportunities.

The question is what should have the priority.

First, put in place effective laws to protect workers from being oppressed by denying fundamental human rights;

Secondly, repeal vexatious laws that (1) do not protect workers; and (2) cause unnecessary interference to doing business.

From India, Ernakulam
Further while discussing with the CII people, it is understood that, the so called labour reforms will be waste. The Centre has amended in Factories Act, but if the state did not amend the Factories Rules as per the Centre guidelines, then this will not have any impact in the factories.

1. Minimum 40 workers are to be engaged for coverage under factories is the latest amendment. If the state did not incorporate the same in Factories rules, then the factories are to apply for licence if the strength exceeds 10 / 20.

2. For closure of the factory as per latest amendment government permission is not required if the strength is less than 300. But the same is not amended in State rules, then the factory must obtain the permission from the government for those engaged more than 100 workers.

3. Earlier if the hazardous activity is carried out in any location, then it will affect only that area. But with this amendment the entire factory premises will be considered as Hazardous factory.

4. Earlier if you file the return, and if you did not manage the authorities then only they will try to find the fault. But due to online filing, the authorities can easily compile the entire data and find out the fault within no time and they will start demand more from the employers.

Instead of concentrating on the so called reforms, they can make required amendment on compiling all the acts into three or four acts i.e., (1) Payment related act (PoW Act, Equal Remuneration Act, MW Act, PoG Act, PoB Act, and in addition they can remove the compensation part for accident and and retrenchment/termination benefits from EC Act and ID Act and the formats for Wages Register, Muster Rolls, OT Register, Accident related compensation formats and Retrenchment / termination related compensation in one act), (2) Safety, welfare and working conditions Related Act (Industry wise) (BOCW Act, Contract Labour Act, ISMW Act, Industrial Establishment Standing Orders Act, Factories Act, Mines Act, Plantation Act, S&E Act, etc), (3) Social Security Related Act (PF & MP Act, ESI Act, EC Act, MB Act, Sexual Harassment at Workplace Act, Trade Union Act, etc.).

Let us hope, our government concentrate on positive side and amend the acts accordingly.

From India, Kumbakonam
Dear S.Bhaskarji,

1. I fully agree with the views as expressed in your remarks as above.

2. In my remarks submitted earlier in this thread I had mentioned about the Report of 2nd National Commission on Labour. I am reproducing some of important recommendations of said Commission relevant on above subject as follows:-

"6. 21 Existing set of labour laws should be broadly grouped into four or five groups of laws pertaining to (i) industrial relations, (ii) wages, (iii) social security, (iv) safety and (v) welfare and working conditions and so on. The Commission is of the view that the coverage as well as the definition of the term ‘worker’ should be the same in all groups of laws, subject to the stipulation that social security benefits must be available to all employees including administrative, managerial, supervisory and others excluded from the category of workmen and others not treated as workmen or excluded from the category of workmen.

6. 22 The Commission agrees with the Study Group that it is necessary to provide a minimum level of protection to Managerial and other (excluded) employees too, against unfair dismissals or removals. This has to be through adjudication by labour court or Labour Relations Commission or arbitration.

6. 38 One of the most important steps that one needs to take in rationalising and simplifying the existing labour laws is in the area of simple common definitions of terms that are in constant use; such terms include ‘worker’, ‘wages’ and ‘establishment’. By making the law applicable to establishments employing 20 or more workers, irrespective of the nature of the activity in which the establishment is engaged, we have avoided the need to define ‘industry’. After examining all aspects of the question, we have come to the conclusion that the persons engaged in domestic service are better covered under the proposed type of umbrella legislation, particularly in regard to wages, hours of work, working conditions, safety and social security.

6.106 The provisions in respect of small establishments can be in the form of a separate law named Small Enterprises (Employment Relations) Act or be included in the general law as a separate chapter. As may be seen from the draft law given at Appendix, the law seeks to cover all aspects of employment including wages, social security, safety and health and so on. A system of self-certification has been introduced to offset the criticisms of ‘Inspector Raj’. An obligatory provision for social security, with contributions from the employer and from the worker as also a compulsory annual bonus at 81/3% of the wages (a month’s wage) are also features of the law that we have proposed. These provisions will ensure that the interests of the workers are fully protected, even while lessening burdens on the management and providing them with vigilance in exercising managerial functions."

3. I think, in the present situation, when there are proposals for reforms in the Labour Laws, the above recommendations of the said Commission may be relevant to a great extent.

From India, Noida
Hi,

I just want to say something, Mr Modi is a very cunning politician. Remember something, last year, in FICCI conference one of our great minister said 'Islands of plenty cannot survive in oceans of poverty'. This was said after passing Companies Act,2013.

Why in India, Government is weak?

1. Huge rate of unemployment & huge poverty.

2. A company (NOT ALL BUT FEW) think, human resource or human being as ASS or a DONKEY. One will not agree, with their terms & condition, other will agree. Its due to fire in stomach.

3. Labor laws increase liabilities for companies.

4. Huge pressure is there on government to increase rate of employment & employability.

5. In the name of generating employment, government often compromise with corporate houses, provide them relief or tax heavens or reduce legal liabilities.

6. Effect of (5) is, immediate rate of employment increase, its like a eye wash, but in long run, society does not get benefit, as hire & fire policy is being established & exploitation of employees increase.

7. net result of (6), richer become more richer & poor become more poorer. The power of citizen to say 'NO' to a particular offer reduces.

8. Plan of prime minister, to reduce the percentage of people below poverty & to increase middle class ceiling in society will fail. REASON BEING UNDER THIS SITUATION, MIDDLE CLASS WILL CEASE TO EXIST WITHN 15YEARS. THERE WILL BE TWO CLASS, UPPER CLASS & LOWER CLASS. SOME OF THE PEOPLE FROM MIDDLE CLASS WILL MOVE TO UPPER CLASS & REST TO LOWER CLASS.

9. Biggest problem in India, is skill bank. Indians may be highly qualified, but most of them are not employable. Employability of Indians needs to be increased first, then rate of employment.

10. In certain sector, License Raj needs to be created first. By doing this, objective of government should be to establish proper corporate governance & control. And increase employability of nation first.

11. Corporate Houses, who follow the hire & fire policies , prefer weak labor laws, will not survive in long run. This is due to LAWS OF ECONOMICS. Government will not be able to control or protect blood suckers. It will result in development of socialist power or communist power in society. Rivers of blood will flow. Reason is , exploitation result in grievance & creation of strong will to take revench.

12. US may claim, they prefer open market. But if we analyze them, US is more like a communist nation, where government impose communism indirectly to corporate houses. Which means, government will be like a communist government , but not communist government. And socialism will not have its negative effect on trade & commerce.



Explanation of 12:

1. Basic principle of Communist Government is Government will supply the needs of society, where a part society will help government, to serve overall society.

2. US Government impose taxes like FUTA (Federal Unemployment Tax Act), where every working individual pay FUTA. This tax is used, for benefit of unemployed people.

3. In US government, provide stipend to unemployed citizen. Warehouses are there for food & supply of home less.

4. US government has established strong insurance policies via insurance companies, to provide insurance to citizen, which will cover basic requirement, like medical facilities, any unwanted or sudden accident. Almost every thing used by US citizens are covered by warranty & insurance, even extended warranty, which is like insurance can be purchased.

5. Life is more secure in US. This form the basic reason to provide unique Social Security Number to each US citizen.

6. Government makes all effort in promoting trade & commerce, which indirectly benefit society. There is always a control via strict laws.

7. Even in US tax heavens are there, but they are not like Indian tax heavens.

8. In India, basic taxation sources are, Income Tax, Service Tax, VAT, wealth tax, trade fair tax etc. All these are present in US too but more heads are there in US.

9. In India, Income Tax Act, 1961 for companies state, a company will be pay tax in respect of income:

a. Received or Deemed to be received in India.

b. Accrued or deemed to be accrued in India.

c. Income accrued outside India. Income deemed to be accrued outside India is not included. Thus India failed to earn a lot of income which is lost due to foreign intermediaries, in case of MNC's.

Where as in US, there is way to tax this income. Subpart F income which US designed during 1977, India cant think today. They can shout for black money, but will never take action to prevent conversion of untainted money into tainted money.

10. US have designed to raise its income by taxing various Foreign incomes, which are not taxed by Indian Government. India Government can raise price of LPG gas, by removing subsidy so that common people suffer. And politicians do, behind the curtain settlement with Corporate Houses , so that Government don't taxed all of their foreign income. Or don't introduce strict laws in this regards.

Last but not the least, India can never change, India will never become a developed country, because we Indians don't want to be a developed country. Our judicial system is horrible, we are the one who create tainted money from untainted money. If we go to a wine shop, or if we purchase gold, we don't ask for tax invoice. Because it will add a tax burden. To save 40 rupees of ours we convert or help to convert, 1000 rupees as untainted money, on which government don't get any revenue. We blame politicians, they are part of society, we blame administration, they are part of society. A politician or an administrative officer will work, as per the norms of society. If we have a corrupted society, how can we expect that our politicians will not be corrupted. When we don't want to change , what is the use of giving lecture?

Labor LAWS, how many from this forum has written letter or sent e-mails, to PMO or Ministry of Labor? India was a developing country & will be a developing country as it is in present, but INDIA can never become a developed country. Here, people don't work, and if someone wish to work hard, honestly, then other's don't let him work.

Thanks & Regards

Sovik B

From India, Mumbai
I also totally agree with the points shared by my frienda and colleagues. I am not against the reforms made but would have been more happier if instead of just implementing , they would have suggested major so that the exploitation of labour could have been stopped.

Would like to know how many have helped the employees to know what is PF and ESIC. The importance of it. As far as I know none. If an employee faces any troubles very few take up their trouble as their own and help them.

The simple reason is they do not know how PF and ESIC help them. I know or you can say have come to many employees who at this stage also ask me, Sir, what is this PF, will I get any benefit. Sir, why should I deduct ESIC when am not avail to get any benefit from ESIC, or getting such benefit is very troublesome.

Would like to give below a brief scenario of few of the incident that occur with my employees--

1. One of the employees rang me and said that my father has been hospitalised and want 6 injections as prescribed by the doctors in the ESIC hospital. I said Ok go and have them from the dispensary or contact them where to get if not available there. He stated that he has done everything but of no use. He further stated that the total cost of the injection is around Rs 2.5 lacs. I was surprised to know the cost and asked what was the problem he was exactly facing. The one word he stated was the inter-department problem.

Please tell why because of inter departmental issue why he is going to face problem.

From India, Calcutta
Hi,

I request to all senior member, for heaven sake, now start to protest, state your pain to PMO. This MNC's are too much, they are using their muscle power, finance power etc, to exploit employees.

High Court, supreme court, these MNC tries their best to stop you, so that you cant place the issue in front of judge. Many tricks they play, beside how many people have got guts to go for a legal battle. Labor laws, justice, court, they have become a joke.......

We need laws, where severe penalty is imposed for breach. We want laws which can meet requirements of present situation. Not backdated laws , made 50 years before. We want court, to give justice within specified time limit.

We are not against, corporate houses, we want them to do business, but not by exploiting employees or sucking employees blood.

I am sharing a link, via which PMO can be easily communicated. But still I would request all professional, to write to PMO. And good news is people are arising from long sleep & started to complain. We want strict laws, in this regards.

LINK GIVEN BELOW:

Prime Minister of India

Regards

Sovik B

From India, Mumbai
This is a very nice topic of discussion. But looking to all submissions, I feel to add a bit in the pool. Our Constitution postulates a duty on the state to frame laws protecting weakest sections of society from unemployment, sickness, loss of work etc. The ILO has passed over the years certain conventions, which India is bound to implement by appropriately passing of laws. We have a twofold system of law making and implementation viz-Central and state governments. Certain Central legislation such as FACTORIES ACT, INDUSTRIAL DISPUTES ACT, BONUS ACT, ESI AND EPF ACT, MW ACT, STANDING ORDERS ACT etc.

However, the agency through which these acts are implemented are the State Governments except ESI and EPF Act and there is a good difference in approach in every state.

Besides this, the state is also empowered to frame rules to acts. For example Factories Act is centrally passed act, but rules are framed by each state. Similarly, MW Act is a central legislation, but M Wages are declared by the State. If we study the rules of all states, mw notifications etc, we find a great difference in them.

Besides this, we have some state legislations. In Maharashtra, we have 2 special enactments which are not found in other states. Maharashtra Recognition of Trade Unions and Unfair Labour Practices Act, 1971 (MRTU &PULP) and Maharashtra Industrial Relations Act, 1946 (MIR Act). Interestingly, the concept and provisions of Unfair Labour Practice were lately embodied in ID Act by Central Govt.

The problem is not with legislation, but it is with the implementing agency. The watchdog is not fair, transparent and honest to its work and duty. It is corrupt. It malfunctions and many times fail to function at all. This is rampant not only with labour laws, but with every law implementing agency such as Police, Excise, Income Tax, Sales Tax, Electricity, Industrial Development Corporations, Pollution Control Department and so on.

When we invite Foreign Companies to start business in India, are we going to greet them with such poor, corrupt, malfunctioning state of governance and offices? We need reforms basically in the mental set-up of these Offices. The Question is how this is going to happen?

Thanks and warm regards

Adv. K. H. Kulkarni

From India, Kolhapur
Dear Mr. Kumar
Initially I felt one more act to confuse the labour law. But by seeing the Section 54 of Small Factories Act, 2014, they made all the provisions for all the related acts. Further they have added one more clause to make provision for the states to make their own rules to their respective states. Further the definition for wages and worker still give more confusion. As per this act we have to deduct PF and ESI even in OT Allowance also.
Here the confusion of which format to be followed is mitigated.
Let our learned members give their opinion.

From India, Kumbakonam
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