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.
From India, Mumbai
Acknowledge(2)
Amend(0)
208The 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.
From India, Mumbai
Acknowledge(2)Amend(0)
Government Clears Amendments to Labor Laws
Given below is a clipping from Business Standard dated August 1, 2014, for your information. Seeking to provide both employers and employees with a win-win situation, the Narendra Modi government has cleared proposals to amend three labor laws, which it plans to bring to Parliament in the ongoing Budget session.
The Union Cabinet has approved amendments to the Factories Act, the Apprentices Act, and the Labor Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act to make them more compatible and beneficial for laborers and employers.
"Cabinet has given its approval for the amendments. The amendments would be beneficial for the laborers. We expect that it will be tabled in the present session of Parliament," Labor Minister Narendra Singh Tomar said today.
It is learned that the amendments to the Factories Act, 1948, would include provisions for adequate safety for women working on the night shift and provide transport after work. Certain norms have also been relaxed to ensure women can work night shifts.
Some of the other proposed changes in the Act include improved safety for workers, doubling the provision of overtime from 50 hours a quarter to 100 hours in some cases, and from 75 hours to 125 hours in other work of public interest.
According to an amendment proposed in the Apprentices Act, it will now not be compulsory for an employer to absorb 50 percent of the apprentices as permanent employees. Another amendment to the Act will enable the addition of 500 new skills and vocations in the industry, including those related to the IT sector.
One of the amendments to the Factories Act states that employees can now avail of leave with pay after completing 90 days on the job, instead of the earlier stipulation of 240 days.
Minister of State for Labor and Employment Vishnu Deo Sai also stated that the amendment to the Factories Act was to make it more compatible with the requirements of the present scenario in the industrial sector.
However, trade unions have expressed concerns over this "unilateral approach" taken by the government. They stated that whatever reported amendments have been done, they did not have any knowledge about it and came to know about it through news reports. The Central Trade Unions are likely to meet soon to decide on an action program against such "hasty employer-friendly amendments" in the name of development.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Given below is a clipping from Business Standard dated August 1, 2014, for your information. Seeking to provide both employers and employees with a win-win situation, the Narendra Modi government has cleared proposals to amend three labor laws, which it plans to bring to Parliament in the ongoing Budget session.
The Union Cabinet has approved amendments to the Factories Act, the Apprentices Act, and the Labor Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act to make them more compatible and beneficial for laborers and employers.
"Cabinet has given its approval for the amendments. The amendments would be beneficial for the laborers. We expect that it will be tabled in the present session of Parliament," Labor Minister Narendra Singh Tomar said today.
It is learned that the amendments to the Factories Act, 1948, would include provisions for adequate safety for women working on the night shift and provide transport after work. Certain norms have also been relaxed to ensure women can work night shifts.
Some of the other proposed changes in the Act include improved safety for workers, doubling the provision of overtime from 50 hours a quarter to 100 hours in some cases, and from 75 hours to 125 hours in other work of public interest.
According to an amendment proposed in the Apprentices Act, it will now not be compulsory for an employer to absorb 50 percent of the apprentices as permanent employees. Another amendment to the Act will enable the addition of 500 new skills and vocations in the industry, including those related to the IT sector.
One of the amendments to the Factories Act states that employees can now avail of leave with pay after completing 90 days on the job, instead of the earlier stipulation of 240 days.
Minister of State for Labor and Employment Vishnu Deo Sai also stated that the amendment to the Factories Act was to make it more compatible with the requirements of the present scenario in the industrial sector.
However, trade unions have expressed concerns over this "unilateral approach" taken by the government. They stated that whatever reported amendments have been done, they did not have any knowledge about it and came to know about it through news reports. The Central Trade Unions are likely to meet soon to decide on an action program against such "hasty employer-friendly amendments" in the name of development.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Highlights of Proposed Amendments
Factories Act:
• Discrimination in terms of gender to be removed; women to be allowed to work at night provided their workplaces have sufficient amenities and ensure safety.
• Prosecution of factory owners to be commuted to penalties for minor offenses.
• Doubling the provision of overtime from 50 hours a quarter to 100 hours in some cases; and from 75 hours to 125 hours per quarter in occupations related to public interest with the approval of state governments.
• Reduction in the eligibility criteria for entitlement of annual leave with pay for employees after rendering service for 90 days compared to the previous provision of 240 days.
• Improved facilities like canteens, restrooms, lunchrooms, and shelter provision in certain categories of factories.
Apprentices Act:
• Up to 10% of the workforce can be employed as apprentices on the shop floor.
• Government to push non-engineers to get appointed as apprentices; currently, it’s largely the engineering students.
• Monetary compensation ceiling enhanced for apprentices. In the first year, an apprentice will get 70% of a semi-skilled worker’s pay, to be raised to 80% in the second and 90% in the third year.
• Government to shoulder 50% of the compensation for apprentices deployed in small-scale industries.
Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act:
• Exemption for small industries employing up to 40 workers from furnishing separate compliance returns for 16 labour laws. This will benefit tens of thousands of SMEs.
• A one-page compliance report will suffice.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Factories Act:
• Discrimination in terms of gender to be removed; women to be allowed to work at night provided their workplaces have sufficient amenities and ensure safety.
• Prosecution of factory owners to be commuted to penalties for minor offenses.
• Doubling the provision of overtime from 50 hours a quarter to 100 hours in some cases; and from 75 hours to 125 hours per quarter in occupations related to public interest with the approval of state governments.
• Reduction in the eligibility criteria for entitlement of annual leave with pay for employees after rendering service for 90 days compared to the previous provision of 240 days.
• Improved facilities like canteens, restrooms, lunchrooms, and shelter provision in certain categories of factories.
Apprentices Act:
• Up to 10% of the workforce can be employed as apprentices on the shop floor.
• Government to push non-engineers to get appointed as apprentices; currently, it’s largely the engineering students.
• Monetary compensation ceiling enhanced for apprentices. In the first year, an apprentice will get 70% of a semi-skilled worker’s pay, to be raised to 80% in the second and 90% in the third year.
• Government to shoulder 50% of the compensation for apprentices deployed in small-scale industries.
Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act:
• Exemption for small industries employing up to 40 workers from furnishing separate compliance returns for 16 labour laws. This will benefit tens of thousands of SMEs.
• A one-page compliance report will suffice.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
RECENT AMENDMENTS IN THE LABOUR LAWS - year 2010.doc