Are Existing Labour Laws Still Relevant for Small Factories Under the 2014 Act?

Dear Seniors, In the recent Parliament session, the Bill "The Small Factories (Regulation of Employment and Conditions of Services), 2014" has passed. In that, some confusions were arising. Please see the attached act and the following points. Can anyone clarify whether THE EXISTING LABOUR LAWS ARE APPLICABLE OR NOT?

Chapter – VIII

25. Social Security

Provident Fund, Health Insurance (maybe ESI), Gratuity, etc., are eligible but

Chapter – XIV

54. Non-application of certain laws:

The following laws shall not apply to any small factory:

1. The Factories Act, 1947
2. The Industrial Disputes Act, 1947
3. The Industrial Employment (Standing Orders) Act, 1946
4. The Minimum Wages Act, 1948
5. The Payment of Wages Act, 1936
6. The Payment of Bonus Act, 1965
7. The Employees State Insurance Act, 1948
8. The Employees Provident Funds and Miscellaneous Provisions Act, 1952
9. The Maternity Benefit Act, 1961
10. The Employees Compensation Act, 1923
11. The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
12. (State) Shops and Establishments Act
13. The Equal Remuneration Act, 1976
14. The Child Labour (Prohibition and Regulation) Act, 1986

Please clarify this. The new act is attached.

Regards,
PBS KUMAR

Trimurti Group Offers Small Factories Act Consultancy Services

We are providing the following services in compliance with the provisions of the Small Factories (Regulation of Employment & Conditions) Act 2014 (Maharashtra Small Factories Rules 2014):

1. Providing day-to-day consultancy on matters pertaining to the Small Factories Act 2014.

2. Explaining the objectives of the Maharashtra Small Factories Rules 2014 and guiding on its applicability and benefits.

3. Submitting online applications along with prescribed documents and fees to obtain a Certificate of Registration and Labour Identification Number (LIN) for the employer and establishment.

4. Ensuring and assisting in complying with various provisions under the Small Factories Act, such as:
- Salary & Wages (including Payment of Wages, Minimum Wages, Deductions, Non-Payment of Wages, Wages of Overtime, Payment of Bonus)
- Normal Working Hours (including Hours of Work, Overtime, Attendance & Late Coming, Absence)
- Leave & Holiday Management – Calculation of Annual Leave with wages (PL, CL, SL), Maternity Benefits
- Social Security Benefits Management – Guidance on Provident Fund, Health Insurance, Gratuity
- Human Resources Management – Guidance on Preparation of Appointment Letters, Joining Formalities, Retrenchment & Termination (Full & Final Settlement)
- Register & Records – Preparation & Online Submission of various Registers & Records (like Leave Muster, Attendance Muster)

5. Preparation and submission of notices with the Factory Inspector as required under this act.

6. Ensuring and assisting in complying with various provisions of the act related to the safety, health, and welfare of workers.

7. Ensuring and assisting in complying with various provisions of the act related to disclosure, notices, displays, etc.

8. Preparation and submission of various forms, returns, and reports from time to time as prescribed under this act.

9. Representing occupiers/manufacturers at inquiries conducted by the Factory Inspector.

10. Replying to and satisfying show cause notices.

For more information, please write to us at [Email Removed For Privacy Reasons].

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[Phone Number Removed For Privacy Reasons]

Dear Mr. Kumar,

While appreciating you for the attachment of the text of the Bill in full, let me present my answer to your query to the extent of my immediate understanding through my cursory reading.

Purpose of the Proposed Act

As stated in the Preamble, the purpose of the proposed Small Factories (Regulation of Employment and Conditions of Services) Act, 2014 is the consolidation and amendment of certain existing laws relating to the regulation of employment and other conditions of service in respect of what is defined as a "small factory" under the Act. To me, it seems to be an umbrella legislation incorporating the core provisions covering the regulation of employment and other conditions of service provided for in the explicitly exempted 14 Acts in a simplified form.

The provisions thus simplified and incorporated cover the important aspects of definitions, procedures of compliance, scales of benefits, and the stipulation of the necessary conditions of eligibility, grievance redressal including necessary mechanisms, etc. Therefore, the exempted laws will not be applicable to small factories coming within the purview of the proposed Act.

Regards