How Will Maharashtra's New Self-Certification Scheme Impact Your Business Operations?

Dear All, Given below is a clipping of a news article in today's press for your information:

Introduction of Self-Certification Scheme in Maharashtra

Mumbai: 24.06.2015

The state government on Tuesday introduced a self-certification scheme as part of easing business operations under its mission "Make in Maharashtra." Industries, shops, and establishments will no longer be subjected to "inspector raj," and the onus of adhering to the laid guidelines to ensure fair business practices will be on individuals who would give an undertaking through self-certification.

The decision will benefit 35,000 factories and 27 lakh shops and establishments in the state. Chief Minister Devendra Fadnavis said, "We want to implement ease in doing business. The individuals will have to issue a certificate affirming they are strictly adhering to the required norms."

Once the self-certification is done, a database will be maintained, and 20 percent of the cases will be checked at random to verify compliance. Government inspectors would monitor only if there are major complaints regarding compliance. The self-certification would be on par with a legal affidavit, and violations of rules would be dealt with strictly, said Fadnavis.

In the decision taken on Tuesday, 16 Acts related to wages and laborers for businesses and shops and establishments have been clubbed under a consolidated annual return, which would be submitted to the labor department once a year. Currently, industries are subjected to ad hoc inspections by various departments every month. Often, there have been complaints from those doing business and shops seeking one-time inspection instead of weekly or monthly inspections from several officers.

Amongst the 16 Acts which have been relaxed from routine inspection for trade and business that are non-hazardous include wages, contract, maternity laws, housing allowance, migrant labor, Motor Vehicles Act, Shops and Establishment Act, and Beedi and Cigarette Act. However, factories and units dealing with chemicals or hazardous materials will not get the exemption of periodic inspections.

Regards

Self-Certification in Industry: A Double-Edged Sword

Have our industrialists reached such a mature level that they will do self-certification with full honesty? The sword of inspection has been a double-edged sword—some inspectors made it a nuisance, but some inspectors used it as a weapon to ensure at least basic welfare activities, such as ensuring wages were being paid.

We have seen industries polluting the environment, releasing untreated wastewater directly into rivers, keeping staff permanently on contracts, and having workers not on the muster roll. I know of industrialists keeping staff at 19 to avoid PF, keeping staff clerical for short periods, and continuously removing and appointing fresh staff. For every industrialist who was recently in the news for gifting flats and Nanos to staff, there are ten who treat workers as disposable commodities.

Equally, I know of union members who do not even visit their office but draw full pay and face no action because of their nuisance value.

https://archive.cleanclothes.org/documents/Agra.PDF

http://scroll.in/article/671592/garm...w-across-india

The way to make business easy is not by cutting out inspections but by ensuring inspections are properly monitored by higher officials and ensuring that inspections do not become another form of harassment. The government should work to make inspections a tool to ensure that laws are followed and not for lining the pockets of inspectors.

Regards

Ensuring Effective Monitoring and Implementation

It is a good thing to see; yet, unless they are inspected, no progress in real terms will happen. In fact, the inspectors should be drawn from a pool at random; they should not have the power to know the implementation. Another pool should watch the implementation in true spirit. In this environment, no pool members dominate and grease to stay in a particular place for more than three years, and the watchdog should implement their move at random.

Quite clearly, unless we have the people who are real to put their efforts for better government, we all fail. No politicians should intrude in the system to destabilize the monitoring and implementing system. We must avoid inspector raj, and we should have a proper monitoring system for implementation that certainly will bring progress.

Let us wait and see...

For the self-certification, are there any forms available that we can fill out and submit to the labor department? I would appreciate more clarity on what needs to be done to ensure compliance and avoid regular inspections.

Note: This is for a company registered under the Shops & Establishment Act in the Maharashtra region.

They should have a common understanding of all the laws and cross-check with EPF for accuracy, including strength requirements. Each department, such as EPF, should enforce stringent punishments for violations to enable proper monitoring. Full transparency regarding these measures is essential.

GOM Resolution on the Captioned Subject

Please find the GOM Resolution on the captioned subject for your ready reference.

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Regards

The Challenges of Self-Certification Schemes

Self-certification schemes place a huge responsibility on owners to ensure compliance with rules and regulations related to the safety and welfare of workers. There is a significant governmental machinery in place to monitor and enforce these regulations. Unfortunately, this machinery is often outdated, sluggish, and inefficient.

Issues with Regulatory Practices

Regulators sometimes misuse their power by causing delays, halting operations, and creating additional challenges. The original intentions behind the enactment of laws are often not fully realized due to these issues. As a result, self-certification schemes have been introduced to streamline business processes and facilitate compliance.

Further Insights and Resources

For further insights on the limitations and risks associated with self-certification, you can refer to the following sources:

- [The limits of self-certification - The Hindu](http://www.thehindu.com/opinion/op-ed/the-limits-of-selfcertification/article6568183.ece)
- [Centre asks states to introduce self-certification for boilers | Business Line](http://www.thehindubusinessline.com/economy/policy/centre-asks-states-to-introduce-selfcertification-for-boilers/article6074771.ece)
- [http://dipp.nic.in/English/questions/17122014/ru2675.pdf](http://dipp.nic.in/English/questions/17122014/ru2675.pdf)

In our country, the primary challenges have always revolved around poor implementation and prevalent corrupt practices.

Dilution of Industrial Controls: A Double-Edged Sword

Not only Maharashtra, but many other states are also racing to dilute controls over setting up industries. The race to relax maximum laws and checks is on, with the mantra being that industry must flourish. This is undoubtedly a good idea. However, the nation has been accustomed to a particular type of governance and administration, and breaking out of these shackles is difficult. Things must be done with focus, planning, and caution.

The level of pollution in big cities serves as a grim warning. No major river remains unpolluted, and most lakes have suffered from pollution and encroachment. The hurried dismantling of the already creaky regulatory machinery and leaving it purely to the good sense of our industry is questionable. The dilution of environmental norms and the destruction of the very few prime forests will have long-term consequences.

Balanced Development: The Need of the Hour

Balanced development is the need of the hour, not the knee-jerk withdrawal of laws, checks, and balances. While we plan to become industry-friendly, it is crucial to ensure that the set norms for the working of the industry are also followed meticulously.

This article is interesting regarding the steps being undertaken for the industry: http://economictimes.indiatimes.com/...w/47980273.cms

Regards

State closer to letting women work night shifts at factories - The Times of India

Extract:

As a part of its Make-in-Maharashtra initiative, the state government is all set to officially allow industries and even factories to depute women employees in night shifts—between 6 pm and 7 am—and all employees to work in extended or additional shifts to make more money.

A copy of the Bill, which is an amendment in the Factories Act 1948, in this regard was released by the government on Monday, which is soon likely to be tabled for approval in the state assembly.

TOI had reported in May the state cabinet's decision to amend the Factories Act, paving the way for women to work at night.

Following the amendments, factories with up to 20 workers will be able to operate even at night to maximize production by using cheaper electricity—power costs less at night than during peak hours. The Bill stressed that adequate safety measures—such as safe transport facilities for women—be in place before factories switch over to such practices.

"The chief inspector of factories will have powers to monitor the establishments and in case of breach of law, penal action would be taken," said a source.

My View:

Serious responsibility is cast on factory management to see that women workers are safe and secure during night working hours.

With self-certification schemes in progress, can management certification alone be adequate to ensure the safety of women workers?

First, thanks to this site for providing anonymous posting. This is the only site that offers this feature, allowing one to express their views frankly.

Experience with "Make in Maharashtra"

This "Make in Maharashtra" initiative is ineffective. I had an experience where I applied for a labor license online, and it was under scrutiny for two months. An officer, ACL, called me on the telephone. In the meeting, he demanded 50,000. Now, my application is rejected for the wrong reason.

If my application is not processed within 7 days, the license is considered granted by law. So, how did the office reject it? This is my question to all.

Regards,
Anonymous

What this anonymous poster has written makes sense. Babus are still delaying sanctions. Their hands are used to receiving cookies and cannot work without the grease.

One of my close friends wanted a license for running an eating joint, and the online application was not useful. An agent had to get into the act to obtain licenses for a small eatery joint. The problem in India, as always, remains implementation.