New Labor Inspection Scheme to Launch on September 1
Among its initiatives to make doing business in the country easier, the labor ministry will on September 1 launch a scheme to liberalize the way inspection for compliance with labor-related laws is done. In what could be a move to crack down on the so-called inspector raj, the new inspection scheme will take away inspectors' discretionary powers.
Unified Portal Launching on October 2
The next such initiative will be a unified portal, to be launched on October 2, that will serve as the common platform for employers to file their annual returns and compliance & inspection reports.
"These steps will bring a paradigm shift in the way the country is viewed and help boost India's ranking in ease of doing business," said a senior labor ministry official asking not to be named.
Coverage and Types of Inspections
The new inspection system will initially cover 16 of the 44 Acts administered by the Union labor ministry, including the Industrial Disputes Act, 1947. It will have three kinds of inspections - the areas where inspection is mandatory, those where it is optional, and the instances where it is based on compliance. All inspections for the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC), besides those in the ambit of the Chief Labor Commissioner and the Directorate General of Mines Safety (DGMS), will be covered under the new scheme.
Under this system, mandatory inspections will be done only in extreme cases. For instance, if a fatal or serious accident has taken place, or in the cases of continuous strikes or lockouts. Optional inspections will be automatically generated through a system on the basis of the priorities of the organization concerned.
Compliance-Based Inspections
For the inspections based on compliance, a Central Analysis and Intelligence Unit (CAIU) will be set up to analyze and collect field data; the cases will be referred to this unit for evidence-based approval for inspection.
An inspector will then have to file his or her report within three days of going to the field. "The inspectors sometimes use their powers to harass both employees and employers. The new system will make them more accountable and take away their discretionary powers. The inspectors cannot go to inspect of their own accord. And their reports will not be considered valid if those are not uploaded within three days of inspection; action will be taken against them in the event of delay," said the official.
Simplified Compliance Process Through Unified Portal
The unified web portal will make the compliance process easier for industry and initially cover 16 central laws. Through this portal, the companies could file their annual returns and inspection reports and the format for these would be simpler than those in force at present. This integrated portal will operate through a unique labor identification number for each employer or establishment. The employers will be allotted a labor identification number (LIN) after registration on the web portal.
"This will provide easier returns for designated Acts, a simpler format for annual returns, and a window for inspection reports," the ministry official said.
The annual return has been reduced from an 80-page long format to a five-page document. Similarly, the inspection reports have also been reduced considerably.
"These steps will curb manual interference and encourage the use of technology so that the industry can engage in a better manner with the labor department," the official added.
EPFO, DGMS, and ESIC have begun the initial work to put the new systems in place by August 31.
Source:
[Labour reforms: Govt to scrap inspectors' discretionary powers | Business Standard News](http://www.business-standard.com/article/economy-policy/govt-scheme-to-relax-labour-inspection-114080700033_1.html)
Among its initiatives to make doing business in the country easier, the labor ministry will on September 1 launch a scheme to liberalize the way inspection for compliance with labor-related laws is done. In what could be a move to crack down on the so-called inspector raj, the new inspection scheme will take away inspectors' discretionary powers.
Unified Portal Launching on October 2
The next such initiative will be a unified portal, to be launched on October 2, that will serve as the common platform for employers to file their annual returns and compliance & inspection reports.
"These steps will bring a paradigm shift in the way the country is viewed and help boost India's ranking in ease of doing business," said a senior labor ministry official asking not to be named.
Coverage and Types of Inspections
The new inspection system will initially cover 16 of the 44 Acts administered by the Union labor ministry, including the Industrial Disputes Act, 1947. It will have three kinds of inspections - the areas where inspection is mandatory, those where it is optional, and the instances where it is based on compliance. All inspections for the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC), besides those in the ambit of the Chief Labor Commissioner and the Directorate General of Mines Safety (DGMS), will be covered under the new scheme.
Under this system, mandatory inspections will be done only in extreme cases. For instance, if a fatal or serious accident has taken place, or in the cases of continuous strikes or lockouts. Optional inspections will be automatically generated through a system on the basis of the priorities of the organization concerned.
Compliance-Based Inspections
For the inspections based on compliance, a Central Analysis and Intelligence Unit (CAIU) will be set up to analyze and collect field data; the cases will be referred to this unit for evidence-based approval for inspection.
An inspector will then have to file his or her report within three days of going to the field. "The inspectors sometimes use their powers to harass both employees and employers. The new system will make them more accountable and take away their discretionary powers. The inspectors cannot go to inspect of their own accord. And their reports will not be considered valid if those are not uploaded within three days of inspection; action will be taken against them in the event of delay," said the official.
Simplified Compliance Process Through Unified Portal
The unified web portal will make the compliance process easier for industry and initially cover 16 central laws. Through this portal, the companies could file their annual returns and inspection reports and the format for these would be simpler than those in force at present. This integrated portal will operate through a unique labor identification number for each employer or establishment. The employers will be allotted a labor identification number (LIN) after registration on the web portal.
"This will provide easier returns for designated Acts, a simpler format for annual returns, and a window for inspection reports," the ministry official said.
The annual return has been reduced from an 80-page long format to a five-page document. Similarly, the inspection reports have also been reduced considerably.
"These steps will curb manual interference and encourage the use of technology so that the industry can engage in a better manner with the labor department," the official added.
EPFO, DGMS, and ESIC have begun the initial work to put the new systems in place by August 31.
Source:
[Labour reforms: Govt to scrap inspectors' discretionary powers | Business Standard News](http://www.business-standard.com/article/economy-policy/govt-scheme-to-relax-labour-inspection-114080700033_1.html)