How Will the Proposed Changes to the Factories Act, 1948 Impact Workers and Employers?

Hi Seniors, Please share your expert views on the following proposed amendment of the Factories Act, 1948.

The Minister of State for Mines, Steel, and Labour & Employment, Shri Vishnu Deo Sai, mentioned that according to the National Sample Survey Organization data, the total workforce in the country in 2009-10 was 46.5 crore. Out of this, about 2.8 crore (6%) were in the organized sector, and the remaining 43.7 crore (94%) were in the unorganized sector. Most labor laws currently apply only to the organized sector, which constitutes around 6% of the total workforce.

In a written reply in the Lok Sabha, Shri Vishnu Deo Sai stated that the Government has put forth a comprehensive proposal to amend the Factories Act, 1948, aiming to introduce labor reforms. The major amendments proposed include:

- Relaxation of restrictions on night work for women in factories, subject to certain conditions
- Increase in the limit of overtime to 100 hours per quarter (previously 50 hours)
- Introduction of a new subsection regarding the compounding of offenses
- Provision of Personal Protective Equipment for worker safety and enhanced precautions against fumes and gases
- Empowerment of the Central Government to make Rules (currently only State Governments can make Rules).

The Minister highlighted that an Expert Committee, led by Dr. Narendra Jadhav, was established in 2011 to work on the amendments. The committee engaged with Employees and Workers Associations (Trade Unions) from January to March 2011, considering suggestions from both Trade Unions Representatives and Employers Representatives. The report of the Expert Committee, along with the proposed amendments, was made public in September 2011. The draft amendments now presented by the Government reflect the outcomes of Inter-ministerial Consultations, feedback from State Governments, and input from Trade Unions Representatives and Employers Representatives during the aforementioned meetings.

Regards, Prakash Tiwari Location: Delhi, India

The proposed amendments to the Factories Act, 1948, as outlined by the Minister of State for Mines, Steel, and Labour & Employment, focus on significant changes aimed at enhancing labor regulations and safety measures within the industrial sector. Here are some key points to consider regarding the proposed amendments:

- Night Work for Women: The relaxation of restrictions on night work for women in factories, subject to specified conditions, reflects a move towards more inclusive labor practices while ensuring safety and protection for female workers.

- Overtime Limit: The proposed increase in the limit of overtime to 100 hours per quarter, up from the existing 50 hours, may impact workforce productivity and necessitate careful monitoring to prevent exploitation and ensure employee well-being.

- Compounding of Offenses: The introduction of a new subsection regarding the compounding of offenses suggests a streamlined approach to addressing violations, potentially leading to more efficient resolution of non-compliance issues.

- Safety Measures: The provisions for Personal Protective Equipment (PPE) for worker safety and additional precautions against fumes and gases underscore the importance of prioritizing employee health and well-being in industrial settings.

- Central Government Empowerment: Granting the Central Government the authority to make Rules, which was previously under the purview of State Governments, could result in more standardized regulations across different regions, promoting consistency and clarity in compliance requirements.

Overall, these proposed amendments signal a proactive approach by the Government to modernize labor laws, enhance workplace safety, and streamline regulatory processes within the industrial sector. Stakeholders, including Trade Unions Representatives, Employers Representatives, and State Governments, have been actively engaged in the consultation process, reflecting a collaborative effort towards achieving balanced and effective labor reforms.