Changes Being Finalized to Child Labour Act, Apprenticeship Act & Minimum Wage Act
The Ministry of Labour and Employment will soon seek Cabinet approval for amendments to three archaic labour laws, kickstarting a long-pending revamp of labour market rules with the aim of benefiting workers and increasing productivity.
The ministry is finalizing changes to the Child Labour Act of 1986, the Minimum Wage Act of 1948, and the Apprenticeship Act of 1961, a senior official told ET. The proposed amendments will be put up before the Cabinet next week, after which they will be introduced in Parliament in the ongoing budget session, the official, who did not wish to be named, said. Parliament's budget session ends on August 14.
“The ministry is keen to see these amendments going through in the current session and I see no hindrance in getting them passed in Parliament. We are finalizing the amendments proposed to the above laws by incorporating the views of various stakeholders,” the official said.
Meanwhile, in a written reply to the Rajya Sabha on Wednesday, Minister of State for Labour and Employment Vishnu Deo Sai said, “The government is actively considering amendments to various labour laws. The inter-ministerial/public/tripartite consultations are in progress.” Although most of these politically-sensitive proposals were taken up by the previous UPA government, none could be concluded. However, this time around, they are unlikely to face any hurdles as the BJP-led NDA government enjoys a majority in Parliament and the Congress, or its allies, are unlikely to raise objections.
Amendments to the Minimum Wage Act
The ministry will set a national floor for minimum wages for workers across professions, resulting in a significant jump in salaries for workers in the unorganized sector. The minimum wages would be revised every five years by the Centre in accordance with the NSSO’s Consumer Expenditure Survey. It would also be revised every six months by state governments in accordance with the Consumer Price Index.
Amendments to the Child Labour (Prohibition and Regulation) Act, 1986
The amendments will bar children between 14 and 18 years from taking up hazardous work such as mining-related jobs. At present, children under 14 years can work except in prohibited sectors such as domestic work, auto workshops, bidi making, carpet weaving, handloom and powerloom industry, and mines. The move is significant as child labour accounts for 8.5% of the 312 million-strong workforce in India. Of these, 43.53 lakh children are between 5 and 14 years of age, as per the Census 2011.
Amendments to the Apprenticeship Act
The government's emphasis on skill development will also lead to an amendment to the Apprenticeship Act over the next month, in line with the announcement made by Finance Minister Arun Jaitley in his budget speech.
The key changes proposed include dropping the clause that mandates imprisonment of company directors who fail to implement the Apprenticeship Act of 1961 and doing away with an amendment proposed by the UPA mandating employers to absorb at least half of its apprentices in regular jobs, besides adding 500 new trades and vocations under the scheme.
The Ministry of Labour and Employment will soon seek Cabinet approval for amendments to three archaic labour laws, kickstarting a long-pending revamp of labour market rules with the aim of benefiting workers and increasing productivity.
The ministry is finalizing changes to the Child Labour Act of 1986, the Minimum Wage Act of 1948, and the Apprenticeship Act of 1961, a senior official told ET. The proposed amendments will be put up before the Cabinet next week, after which they will be introduced in Parliament in the ongoing budget session, the official, who did not wish to be named, said. Parliament's budget session ends on August 14.
“The ministry is keen to see these amendments going through in the current session and I see no hindrance in getting them passed in Parliament. We are finalizing the amendments proposed to the above laws by incorporating the views of various stakeholders,” the official said.
Meanwhile, in a written reply to the Rajya Sabha on Wednesday, Minister of State for Labour and Employment Vishnu Deo Sai said, “The government is actively considering amendments to various labour laws. The inter-ministerial/public/tripartite consultations are in progress.” Although most of these politically-sensitive proposals were taken up by the previous UPA government, none could be concluded. However, this time around, they are unlikely to face any hurdles as the BJP-led NDA government enjoys a majority in Parliament and the Congress, or its allies, are unlikely to raise objections.
Amendments to the Minimum Wage Act
The ministry will set a national floor for minimum wages for workers across professions, resulting in a significant jump in salaries for workers in the unorganized sector. The minimum wages would be revised every five years by the Centre in accordance with the NSSO’s Consumer Expenditure Survey. It would also be revised every six months by state governments in accordance with the Consumer Price Index.
Amendments to the Child Labour (Prohibition and Regulation) Act, 1986
The amendments will bar children between 14 and 18 years from taking up hazardous work such as mining-related jobs. At present, children under 14 years can work except in prohibited sectors such as domestic work, auto workshops, bidi making, carpet weaving, handloom and powerloom industry, and mines. The move is significant as child labour accounts for 8.5% of the 312 million-strong workforce in India. Of these, 43.53 lakh children are between 5 and 14 years of age, as per the Census 2011.
Amendments to the Apprenticeship Act
The government's emphasis on skill development will also lead to an amendment to the Apprenticeship Act over the next month, in line with the announcement made by Finance Minister Arun Jaitley in his budget speech.
The key changes proposed include dropping the clause that mandates imprisonment of company directors who fail to implement the Apprenticeship Act of 1961 and doing away with an amendment proposed by the UPA mandating employers to absorb at least half of its apprentices in regular jobs, besides adding 500 new trades and vocations under the scheme.